What options did Anil Ambani have after SEBI’s ban from the securities market?

Anil Ambani news: After the five-year ban imposed by the Securities and Exchange Board of India (SEBI) on the Reliance Anil Dhirubhai Ambani Group (ADAG), CMD Anil Ambani, the Indian business person can't participate directly or indirectly in the security market. However, SEBI's order in the Reliance Home Finance loan scandal case is not the end for Anil Ambani. He can challenge the SEBI's order at the Securities Appellate Tribunal (SAT) and ask for a stay on the SEBI's order dated 22nd August 2024.

According to market experts, Anil Ambani is expected to move to SAT against the SEBI's order at any time, as Saturday and Sunday were non-working days. They said that SAT would also take little time to hold or give a stay to the SEBI's order. So, Reliance ADAG stocks are expected to remain highly volatile soon.

SAT option for Anil Ambani

Speaking on the SAT action that Anil Ambani may take after SEBI's ban, Awanish Kumar Mishra, Founder of the Center for Financial Inclusion and Planning, said, "In compliance with the SEBI order dated 22nd August 2024, para 75(iii), Anil Dhirubhai Ambani resigned from the post of Director of listed companies. He has been fined ₹25 Crore. He can move against SEBI above Order in Securities Appellate Tribunal (SAT), Mumbai and plead for stay over execution of this order."

Asked about the time it may take for the SAT to deliver its verdict, Mishra said, “Taking a cue from the NSE co-location scam, the NSE had also moved to SAT on the very next date of the SEBI's crackdown, and SEBI gave a stay on SEBI order on the same date of NSE's appeal. So, I expect the same speed to be taken by SAT provided Anil Ambani exercises this SAT option to challenge the SEBI order banning him from the security market for five years.”

Reliance ADAG stocks in focus

Expecting the volatility in Reliance ADAG stocks to continue, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "Though Anil Ambani's next move is not clear, it looks clear that Reliance ADAG stocks may remain highly volatile in the next few sessions. However, the move has made Anil Ambani work extra hard as arranging cash for the operation will become tough for the entire ADAG company. However, if he gets to stay against the SEBI order, we can expect some relief rally in ADAG company shares. Investors are advised to remain away from these shares and look at some other stocks."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.