February 12, 2022 10:12:50 am
Sebi on Friday penalised the NSE and its former MDs and CEOs, Chitra Ramkrishna and Ravi Narain, and others for violating securities contract rules in a case related to the appointment of Anand Subramanian as group operating officer and advisor to the MD. The regulator has levied a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on the NSE, Narain and Subramanian and Rs 6 lakh on V R 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 in the books of RHFL. The amount of Rs 8,884.46 crore was first transferred to 43 potentially indirectly linked entities, or PILEs, out of which an amount of Rs 8,847.74 crore was onward transferred to 19 entities. Of this, 14 entities were reportedly found to be group companies and other PILE entities bearing close nexus with the promoter group (Anil Ambani group). Sebi investigation relied on forensic audits conducted by Bank of Baroda.
According to Sebi, the Noticee No 1 (RHFL) is also alleged to have acted not only in gross derogation of its own lending policy and procedure, but also in gross violation of provisions of securities laws, where it has been observed that in order to benefit certain promoter related entities, a conduit layer of GPC loans has been created only to hoodwink the public and other stakeholders. “The Noticee No 1 was well cognizant of the fact that the loans being disbursed to the GPCL borrowers were not meant for their working capital requirement but were destined to reach the hands of the promoter related entities,” Sebi said.
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“Further, in a blatant display of impropriety and dishonesty, the Noticee No 2 (Anil Ambani) — not even holding the post of an Executive Director in the company — by misusing his controlling powers, is seen to have sanctioned loans to certain connected entities,” the Sebi order said.
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