Sebi on Friday sanctioned the NSE and its former chief executives and CEOs, Chitra Ramkrishna and Ravi Narain, and others for breaching securities contract rules in a case related to the appointment of Anand Subramanian as chief operating officer. of the group and advisor to the MD. The regulator imposed a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on NSE, Narain and Subramanian and Rs 6 lakh on VR Narasimhan, who was the chief regulatory officer and chief compliance officer.
The Sebi order said 100 loan cases amounting to Rs 8,884.46 crore were still outstanding on RHFL’s books. The amount of Rs 8,884.46 crore was first transferred to 43 potentially indirectly related entities, or PILE, of which an amount of Rs 8,847.74 crore was then transferred to 19 entities. Of this number, 14 entities would have been considered as group companies and other PILE entities having a close link with the promoter group (Anil Ambani group). Sebi’s investigation relied on forensic audits conducted by the Bank of Baroda.
According to Sebi, Opinion No. 1 (RHFL) also allegedly acted not only in clear violation of its own loan policy and procedure, but also in clear violation of the provisions of the securities laws, where it was observed that, For the benefit of certain developer-related entities, an intermediary layer of GPC loans has been created solely to deceive the public and other stakeholders. “Notice No 1 was well aware that the loans provided to GPCL borrowers were not for their working capital needs, but were intended to reach entities related to the developer,” Sebi said.
“Furthermore, in a blatant display of impropriety and dishonesty, Noticee No 2 (Anil Ambani) – not even holding the position of Executive Director in the company – by abusing his controlling powers, is considered to be having sanctioned loans to certain related entities,” the Sebi order said.