Yes Bank fraud
SEBI turns down Anil Ambani’s settlement bid in Yes Bank bond case, penalty could exceed ₹1,828 cr
Mumbai: Industrialist Anil Ambani is staring at a potential penalty of at least ₹1,828 crore after the Securities and Exchange Board of India (SEBI) declined his proposal to settle allegations linked to investments in Yes Bank’s additional tier-1 bonds, Reuters reported.
The decision, taken on July 7 and detailed in documents reviewed by Reuters, comes amid intensifying scrutiny of Ambani’s business ties with the crisis-hit lender.
Disputed bond investments and alleged loan link
Between 2016 and 2019, Reliance Mutual Fund — then controlled by Ambani — put ₹2,150 crore into Yes Bank’s AT-1 bonds.
These instruments were wiped out in 2020 when the bank was deemed insolvent.
SEBI’s probe concluded that the fund’s purchases were tied to loans Yes Bank extended to other companies in the Anil Ambani group.
The regulator said the transactions caused ₹18.28 billion in losses to investors and had a “market wide impact.”
Ambani had sought to resolve the matter without admitting guilt, but SEBI refused.
Mounting pressure from multiple investigations
The younger brother of billionaire Mukesh Ambani has already come under the scanner for dealings between his group and Yes Bank, which was later rescued by a consortium of lenders under a central bank-approved plan.
In July, the Central Bureau of Investigation searched locations linked to his group over allegations of a ₹30 billion loan diversion scheme.
A joint settlement bid by Ambani, his son Jai Anmol Ambani, and former Yes Bank CEO Rana Kapoor was also turned down.
Possible investor compensation orders ahead
According to the documents, SEBI has informed Ambani and his son that it intends to issue directions compelling them to repay investors, alongside possible monetary fines.
“SEBI has also shared its findings with Enforcement Directorate,” said two people with direct knowledge.
The regulator’s notice alleges that Ambani and his son exerted influence over Reliance Mutual Fund’s investment decisions through then-CEO and chief investment officer Sundeep Sikka.
It references meetings between Ambani and fund executives, as well as emails in which Kapoor referred to investments in Reliance Group entities as a “bilateral relationship deal.”
Other executives under the scanner
The SEBI notices also name the fund house, Sikka, its chief investment officer, and its former chief risk officer, alleging they bypassed risk controls and ignored internal policies while approving the investment.
The four have separately applied for a ₹950 million settlement, which is still under review.
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