Reliance Home Finance and Reliance Power Shares Plunge After SEBI Action on Fund DiversionReliance Home Finance and Reliance Power Shares Plunge After SEBI Action on Fund Diversion

Shares of Anil Ambani-led companies, including Reliance Home Finance Ltd, Reliance Power, and Reliance Communications, fell sharply on Monday, reaching their lower circuit limits. This drop came after SEBI barred Anil Ambani and 24 others from the securities market for five years due to fund diversion from Reliance Home Finance Ltd.

Reliance Power shares dropped 4.99% to ₹32.73 on the BSE, while Reliance Home Finance Ltd shares fell 4.93% to ₹4.24. Reliance Communications shares also declined by 4.92% to ₹2.32, with Reliance Infrastructure shares slipping 2.90% to ₹205.55.

The sell-off in these stocks began on Friday after SEBI imposed a ₹25 crore penalty on Ambani and prohibited him from holding key managerial positions in any listed company for five years. Additionally, SEBI fined 24 entities between ₹21 crore to ₹25 crore and barred Reliance Home Finance from the securities market for six months.

SEBI’s investigation revealed that Anil Ambani, along with key management personnel of Reliance Home Finance Ltd, diverted funds by disguising them as loans to entities linked to him. These loans, approved despite warnings from the board, led to significant defaults by borrowers, leaving Reliance Home Finance in financial trouble.

The probe highlighted the serious mismanagement within the company, raising concerns about the misuse of funds and its impact on shareholders.