Anil Ambani, Arshad Warsi – Famous names that SEBI has excluded from the markets

In one big step SEBI has banned Anil Ambani from participating in the securities markets for 5 years, for diverting funds from Reliance Home Financing (RHF). This means that the debt-ridden Ambani scion cannot serve as a senior manager or director in any listed company for the next five years. He will also have to pay a penalty of Rs 25 crore.

In addition to Ambani, 24 other people, including former employees of RHF, were also banned from trading in the securities market for a period of five years. RHF himself was barred from the securities market for six months and was also fined Rs 600,000.

Not the first time

In its order, SEBI found Ambani guilty of fraud and lending RHF funds to companies associated with him under the guise of loans. This was despite the company's board of directors having repeatedly advised them to stop such practices. Ambani continued to orchestrate the fraud thanks to his key position as chairman of the ADA Group and also due to his involvement in RHFL's holding company.

In July this year, SEBI had banned notorious fugitive Vijay Mallya from trading in the Indian markets for three years after Mallya was found to have illegally channelled funds through foreign banks and companies to boost and profit from the share value of his own companies – also known as stock market manipulation. While all his assets in India are frozen, he is also barred from serving as a director of any listed Indian company for the period.

But this is not the first time that SEBI has barred people from the markets. Last year, SEBI had barred Mohammad Nasiruddin Ansari, popularly known as Baap of diagramsafter he was found to be giving misleading advice on the stock market under the guise of teaching courses.

SEBI also asked Ansari to refund Rs 17.2 crore that he had collected under the guise of dues. Another popular financial influencer, PR Sundar, was banned from options trading for a whole year when he was found to be running full-fledged investment advisory services, i.e., recommending buy and sell stocks, without holding the required licenses.

Bollywood actors Arshad Warsialong with his wife Maria Goretti, were also banned by SEBI last year after he was found to have uploaded videos that lured investors to buy shares of two specific companies, namely Sadhna Broadcast and Sharpline Broadcast, thus earning profit of Rs 29.43 lakh and Rs 37.56 lakh respectively. They were not allowed to trade until they deposited all the profits earned in this way in an escrow account.

However, the duo and Warsi’s brother Iqbal Warsi later received legal assistance from the SAT (Securities Appellate Tribunal), which overturned the SEBI order.