Reliance Power hits lower circuit for the third consecutive session

Shares of Reliance Power and Reliance Home Finance have plunged to a 5 percent lower circuit for the third consecutive session.

This sharp decline follows the market regulator, the Securities and Exchange Board of India (SEBI), imposing a five-year ban on promoter Anil Ambani from the securities market.

The ban on Anil Ambani and 24 other entities, including former critical officials of Reliance Home Finance, was imposed due to alleged fund diversion from the company.

SEBI fined Ambani ₹25 crore and barred him from any association with the securities markets. Additionally, SEBI has barred Reliance Home Finance from the securities market for six months and imposed a ₹6 lakh fine on the company.

Market Impact

At 10:20 am, Reliance Power shares were trading at ₹31.11 on the National Stock Exchange (NSE), locked at the lower circuit. Reliance Home Finance was also closed at the lower circuit, trading at ₹4 on the NSE.

Clarification by Reliance Power

Reliance Power clarified that it was not a notice or party to the proceedings before SEBI in which the order was passed. Anil Ambani had resigned from the board of directors of Reliance Power Ltd under an interim order dated February 11, 2022, passed by SEBI in the same proceedings.

Therefore, SEBI’s order dated August 22, 2024, has no bearing on Reliance Power Ltd’s business and affairs.

Other Anil Ambani company shares impacted

Apart from Reliance Power and Reliance Home Finance, several other entities have been impacted by the SEBI ban on Anil Ambani. Here are some key details:

• Reliance Unicorn Enterprises
• Reliance Exchange Next
• Reliance Commercial Finance
• Reliance Cleangen
• Reliance Business Broadcast News Holdings
• Reliance Big Entertainment

These companies have also faced penalties, with each fined ₹25 crore. The ban and penalties stem from their involvement in the alleged fraudulent scheme that diverted funds from Reliance Home Finance five years ago.

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