SEBI Rejects Anil Ambani's Proposal for Settlement in Yes Bank Investment Matter

The Securities and Exchange Board of India (SEBI) has turned down a proposal by Anil Ambani to settle charges related to investments in Yes Bank’s additional tier-1 bonds. The rejection could leave him facing a penalty of at least ₹1,828 crore ($208.4 million), according to regulatory documents reviewed by Reuters.

Background of the Case

Between 2016 and 2019, Reliance Mutual Fund, then under Ambani’s control, invested ₹2,150 crore ($245.3 million) in Yes Bank’s AT1 bonds. These bonds were written off in 2020 after the bank was declared insolvent. The mutual fund business was sold to Nippon Life Insurance in 2019, and the charges pertain to the period before the sale.

SEBI’s Findings

SEBI’s investigation states the investments were linked to loans from Yes Bank to other companies in the Anil Ambani group. The regulator said the fund’s actions caused investor losses amounting to ₹1,828 crore and had a “market-wide impact.” It also alleged that Ambani and his son, Jai Anmol Ambani, influenced investment decisions through Reliance Mutual Fund’s top executives.

Read more: ED Raids 50 Locations Linked to Anil Ambani in ₹3,000 Crore Yes Bank Loan Fraud Probe!

Legal and Enforcement Actions

Recently, the Central Bureau of Investigation(CBI) searched premises linked to the group in connection with an alleged scheme involving ₹3,000 crore in loans from Yes Bank. SEBI has informed Ambani and his son that it will issue directions for compensating investors, with possible additional monetary penalties.

Related Proceedings

As per the report, SEBI has also charged Reliance Mutual Fund, its chief executive, chief investment officer, and former chief risk officer in connection with the same matter. These individuals have filed a separate ₹950 million settlement application, which is still under consideration.

Conclusion

The rejection of the settlement request adds to multiple ongoing proceedings related to the group’s financial dealings with Yes Bank between 2016 and 2019.

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