Anil Ambani Group stocks, Reliance Power and Reliance Infrastructure, witnessed a sharp decline on Wednesday a day after the Securities and Exchange Board of India (SEBI) turned down a settlement proposal from Reliance Group Chairman regarding charges linked to investments in Yes Bank, placing him at risk of a ₹1,828 crore penalty. SEBI's investigation uncovered that Ambani's Reliance Mutual Fund invested approximately ₹2,035.89 crore in Yes Bank's additional Tier-1 bonds before the bank's 2020 insolvency.
On Wednesday, Reliance Power declined 4.92 per cent to hit a low of ₹41.73 on BSE. Reliance Infrastructure shares fell 5 per cent to hit a low of ₹257.55 apiece. It was later trading at ₹260.95, down 3.74 per cent. Anil Ambani is not on the boards of Reliance Power and Reliance Infrastructure, but is among promoters at both the ADAG group companies.
Sebi said that the investments were made in return for loans that Yes Bank extended to other Ambani group companies. The market regulator estimates the investor losses to be at ₹1,828 crore and flagged the case as having a "market-wide impact." Anil Ambani, his son Jai Anmol Ambani, and former Yes Bank Chief Executive Officer Rana Kapoor had previously sought a settlement without admitting guilt.
According to documents reviewed by Reuters, Sebi will be sending directions to Ambani and his son, asking them to compensate the investors. Additional action may involve monetary penalties, the documents showed. Sebi has also forwarded its findings to the Enforcement Directorate (ED), suggesting possible escalation to a criminal or money-laundering investigation. Earlier this month, ED had summoned Ambani for questioning, and several searches against the Reliance Group companies were also launched, with the agency recovering a number of documents and computer peripherals from multiple locations. During its investigation, Sebi also found that Ambani had influenced the investment decisions of Reliance Mutual Fund. The fund house, along with its chief investment officer and former chief risk officer, is also charged by Sebi for causing losses to investors. A separate settlement worth ₹95 crore was filed by these entities, which is still under consideration.