Reliance Home Finance, Reliance Infra to Reliance Power: ADAG stocks fell up to 13% after SEBI’s ban on Anil Ambani

Reliance Dhirubhai Ambani Group (ADAG) stocks witnessed heavy beating after the Indian capital market regulator, the Securities and Exchange Board of India (SEBI), imposed a five-year ban on Anil Ambani and 24 others, including some Reliance Home Finance officials. Reliance Home Finance shares that had touched the 5 per cent upper circuit during early morning deals hit a 5% lower circuit immediately after the SEBI's order. Reliance Infrastructure share price witnessed heavy beating as the stock fell around 12 per cent after the fresh order by SEBI. Reliance Power share price was down by around 5 per cent against its previous close of ₹36.30 apiece on the NSE. 

ADAG stock performance after SEBI's order

Reliance Home Finance shares today opened upside at ₹4.92 apiece on the NSE and touched the 5 per cent upper circuit. However, the stock witnessed sharp selling after the SEBI order, and it touched a 5 per cent lower circuit within a few minutes.

The Reliance Infrastructure share price witnessed a maximum beating during ADAG stock selling. The share price touched an intraday low of ₹201.99 apiece on the NSE. However, the stock recovered from its intraday low and came around ₹205.50 apiece, logging a 13 per cent downside against its previous close of ₹235.71 apiece.

Reliance Power's share price also came under selling pressure despite a healthy performance in the morning session. Today, it touched the upper circuit during the morning session, but the ADAG stock came under sharp selling pressure after the SEBI penalty on Anil Ambani and touched a 5 per cent lower circuit.

Trading in the other three Reliance ADAG stocks — Reliance Capital, Reliance Communications and Reliance Naval and Engineering — remained suspended during Friday's dealings.

SEBI's order on Reliance Home Finance

The Securities and Exchange Board of India (SEBI) has banned industrialist Anil Ambani and 24 others, including former senior executives of Reliance Home Finance, from participating in the securities market for five years. This action is a result of their involvement in the misdirection of company funds.

SEBI has identified a significant financial fraud involving Reliance Home Finance Ltd. (RHFL). Led by Anil Ambani and other key figures, the scheme involved siphoning off substantial funds from the company through dubious loan disbursements, resulting in severe losses for shareholders.

SEBI also imposed a ₹25 crore penalty on Anil Ambani and restricted him from any association in the Indian security market, including as a director or Key Managerial Personnel (KMP) in any listed company.