Anil Ambani to challenge Sebi's 5-year market ban, readies legal response

Reviewing Ban: Anil Ambani, the noted industrialist and chairman of the Reliance Group, is understood to be studying carefully a recent order from the Securities and Exchange Board of India that disallows him from the capital markets for the next five years. The August 22 order also imposed a fine of Rs 25 crore on Ambani, whom it accused of playing a key role in siphoning off funds from Reliance Home Finance Ltd, a subsidiary of his conglomerate.

On Sunday, a spokesperson for Ambani confirmed that he is considering the implications of the Sebi order and will take appropriate legal steps based on advice. He also said Ambani had already resigned from the boards of Reliance Infrastructure Ltd and Reliance Power Ltd in February 2022 itself, following an interim Sebi order related to the same case.

The new Sebi order not only affects Ambani but also 24 others, effectively barring them from associating with the securities market. That, in effect, prohibits all of them from buying, selling or otherwise dealing in securities, directly or indirectly.

"Mr. Ambani has fully cooperated with the interim order since February 2022 for a period of the last two and a half years," the spokesperson said, adding that Ambani will decide on his next course of action after going through the latest developments in detail.