SEBI: SEBI tightens its grip on Reliance Big Entertainment
New Delhi| SEBI has taken strict action against Reliance Big Entertainment, ordering the freezing of its bank, demat accounts and mutual fund holdings to recover dues of Rs 26 crore. This step has been taken after the notice issued by Reliance Home Finance Limited in November regarding illegal fund diversion.
The market regulator had sent a notice to Reliance Big Entertainment Pvt Ltd (now known as RBEP Entertainment Pvt Ltd) on 14 November and asked the entity to pay the dues within 15 days on charges related to illegal diversion of funds in the case of Reliance Home Finance Ltd (RHFL)
According to the notice, Reliance Big Entertainment owed Rs 26 crore, which included interest and recovery costs. According to the notice, SEBI said there are sufficient reasons to believe that the defaulter can settle securities in bank accounts and demat accounts or mutual fund folios and “thereby, there will be delay or hindrance in recovery of the amount due”.
Therefore, SEBI asked all banks, depositories and mutual funds not to allow any kind of debit from accounts. Last week, the regulator sent attachment notices to three entities to recover dues of Rs 78 crore for illegal transfer of funds from the company.
These institutions are Aadhaar Project Management and Consultancy Private Limited, Indian Agri Service Private Limited and Mohanbir Hi-Tech Build Private Limited. In August this year, SEBI had banned 24 other entities, including industrialist Anil Ambani, former key executives of Reliance Home Finance, from the securities market for five years for misappropriation of funds from the company.
SEBI has fined Ambani Rs 25 crore and barred him from joining the securities market as a director or key managerial personnel (KMP) in any listed company or any intermediary registered with the market regulator for five years. In addition, the regulator banned Reliance Home Finance Limited (RHFL) from the securities market for six months and fined it Rs 6 lakh.
