Shares of Reliance Infrastructure Ltd, Reliance Power Ltd and Reliance Home Finance fell sharply in Friday's trading session. Reliance Infra emerged as the top laggard out of three mentioned stocks and tumbled 14.19 per cent to hit a day low of Rs 202.
RPower today dived 9.51 per cent from its one-year high level of Rs 38.07 to hit a lower price band of Rs 34.45. Reliance Home tanked 4.90 per cent to touch its lower circuit level of Rs 4.46.
Today's correction in the share prices came after market regulator Sebi restricted industrialist Anil D Ambani and 24 other entities, including former key officials of Reliance Home, from the securities market for five years over diversion of funds from the company.
Securities and Exchange Board of India (Sebi) also imposed a penalty of Rs 25 crore on Anil Ambani and restrained him from being associated with the market including as a director or Key Managerial Personnel (KMP) in any listed company, or any intermediary registered with the market regulator, for 5 years.
The regulator barred Reliance Home from the securities market for six months and slapped a fine of Rs 6 lakh on it.
In its 222-page final order, Sebi found that Anil Ambani, with the help of Reliance Home's key managerial personnel, had orchestrated a fraudulent scheme to siphon off funds from RHFL by disguising them as loans to entities linked to him.
Although the Board of Directors of Reliance Home had issued strong directives to stop such lending practices and reviewed corporate loans regularly, the company's management ignored these orders.
Sebi said its findings have established the "existence of a fraudulent scheme, orchestrated by Noticee No. 2 (Anil Ambani) and administered by the KMPs of Reliance Home, to siphon off funds from the public listed company (Reliance Home) by structuring them as 'loans' to credit unworthy conduit borrowers, and in turn, to onward borrowers, all of whom have been found to be 'promoter linked entities' i.e. entities associated/ linked with Noticee 2 (Anil Ambani)."