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Sebi rejects Anil Ambani's plea in Yes Bank case, ED probe continues: Report

Sebi rejects Anil Ambani's plea in Yes Bank case, ED probe continues: Report

India Today2 days ago
Sebi has turned down industrialist Anil Ambani's bid to settle charges related to Yes Bank investments, reported Reuters, citing documents. This could leave him facing penalties of no less than Rs 18,280 crore.The case relates to investments worth Rs 21,500 crore made by Reliance Mutual Fund, then owned by Ambani, in Yes Bank's additional tier-1 (AT-1) bonds between 2016 and 2019. These bonds were written off in 2020 when Yes Bank was declared insolvent. By then, Reliance Mutual Fund had already been sold to Nippon Life Insurance, but the charges date back to the period before the sale.Sebi's investigation claims the investments were made in exchange for loans from Yes Bank to other companies in the Anil Ambani group. The regulator said the transactions caused huge losses for investors, amounting to Rs 18.28 billion and had a 'market-wide impact'.Ambani, his son Jai Anmol Ambani, and former Yes Bank CEO Rana Kapoor had proposed a settlement without admitting guilt, but Sebi turned it down on July 7. The regulator has now informed Ambani and his son that it will issue directions asking them to compensate affected investors. Monetary penalties and other actions could follow.The matter has also been referred to the Enforcement Directorate (ED), India's financial crime investigation agency, which is already looking into other dealings between Ambani's companies and Yes Bank. Just last month, the ED searched premises linked to the group as part of a probe into an alleged Rs 3,000 crore loan syphoning case.According to Sebi's notices, Ambani and his son were directly involved in the investment decisions, using their influence over Reliance Mutual Fund through its then chief executive Sundeep Sikka and chief investment officer. The notices cite meetings between Ambani and fund executives during the investment period, as well as emails in which Kapoor described the deals as part of a 'bilateral relationship' between Yes Bank and Ambani's group.Sebi has also charged Reliance Mutual Fund, its senior executives, and its former chief risk officer for their role in the alleged losses. These individuals have filed a separate settlement application worth Rs 950 crore, which is still under review.advertisement(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsMust Watch
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