Anil Ambani-owned ADAG stocks extend decline; Reliance Home Finance, Reliance Power shares hit 5% lower circuits

Anil Dhirubhai Ambani Group (ADAG) stocks including Reliance Home Finance and Reliance Power extended fall on Monday after the regulatory action on Anil Ambani and some Reliance Home Finance officials. Reliance Home Finance share price was locked in at 5% lower circuit, while Reliance Power share price also opened at 5% lower circuit limit. Reliance Infrastructure shares declined over 1%, while Reliance Communication share price declined 5%.

Trading in the other two Reliance ADAG stocks — Reliance Capital and Reliance Naval and Engineering — remained suspended during Monday’s dealing

The heavy beating in ADAG stocks comes after capital market regulator Securities and Exchange Board of India (SEBI) imposed a five-year ban on Anil Ambani and 24 others, including some Reliance Home Finance officials. ADAG stocks declined up to 10% on Friday.

SEBI Order on Reliance Home Finance

In an order issued on August 22, SEBI had banned industrialist Anil Ambani and 24 others, including former senior executives of Reliance Home Finance, from participating in the securities market for five years due to their involvement in the “misdirection of company funds”.

The regulator had also imposed a fine of ₹25 crore 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, saying he orchestrated a scheme to “siphon off” funds from Reliance Home Finance, a listed subsidiary of conglomerate Reliance Group of which he is chairman.

Anil Ambani’s Statement

Anil Ambani is reviewing the Sebi in an alleged fund diversion case and will take appropriate next steps as legally advised, his spokesperson said in a statement on Sunday.

Ambani had resigned from the board of Reliance Infrastructure Ltd and Reliance Power Ltd, pursuant to Sebi’s interim order dated February 11, 2022 in the matter pertaining to Reliance Home Finance Ltd, the spokesperson said in a statement.

He “is in compliance with the said interim order (of February 11, 2022) for the last two and half years,” the statement added.

Anil Ambani’s Statement

Anil Ambani is reviewing the Sebi in an alleged fund diversion case and will take appropriate next steps as legally advised, his spokesperson said in a statement on Sunday.

Ambani had resigned from the board of Reliance Infrastructure Ltd and Reliance Power Ltd, pursuant to Sebi’s interim order dated February 11, 2022 in the matter pertaining to Reliance Home Finance Ltd, the spokesperson said in a statement.

He “is in compliance with the said interim order (of February 11, 2022) for the last two and half years,” the statement added.

In a separate statement, Mumbai-listed Reliance Infrastructure Ltd said it “was not a noticee or party to the proceedings before Sebi in which the order is passed. No directions are given in the order against Reliance Infrastructure Ltd.”

“Mr Ambani had resigned from the board of directors of Reliance Infrastructure Ltd pursuant to the interim order dated February 11, 2022 passed by Sebi in the same proceedings. Therefore, the order dated August 22, 2024 passed by Sebi has no bearing whatsoever on the business and affairs of Reliance Infrastructure Ltd,” it said.

Reliance Power also issued a similar statement saying Ambani had resigned in 2022 and that the latest Sebi order has no bearing on it.