SEBI Tightens Its Grip on Reliance Big Entertainment, Orders Seizure of Bank and Demat Accounts
The Securities and Exchange Board of India (SEBI) has intensified its actions against Reliance Big Entertainment, now known as RBEP Entertainment, ordering the attachment of its bank accounts, demat accounts, and mutual fund holdings in a bid to recover dues amounting to Rs 26 crore. The move follows allegations of illegal fund diversion related to Reliance Home Finance Limited (RHFL).
On November 14, SEBI issued a notice to Reliance Big Entertainment, instructing the company to settle its outstanding dues within 15 days. These dues stem from charges related to the misappropriation and diversion of funds linked to RHFL. The amount, which includes interest and recovery costs, totals Rs 26 crore.
SEBI’s notice highlighted concerns that the company might attempt to dispose of assets in its accounts to delay or obstruct the recovery process. In response, the market regulator has directed all banks, depositories, and mutual funds to prevent any debits from the company’s accounts to ensure the dues are recovered promptly.
This latest action follows earlier attachment notices issued by SEBI to three other entities—Aadhar Project Management and Consultancy Pvt Ltd, Indian Agri Service Pvt Ltd, and Mohanbir Hi-Tech Build Pvt Ltd—as part of the effort to recover Rs 78 crore linked to the illegal diversion of funds.
In August 2023, SEBI had already imposed significant penalties on Anil Ambani, former key officials of Reliance Home Finance, and 24 other entities involved in the misappropriation. Ambani was banned from the securities market for five years and fined Rs 25 crore. Additionally, RHFL was banned from participating in the securities market for six months and penalized Rs 6 lakh.
SEBI’s actions underscore its commitment to holding companies and individuals accountable for financial misconduct and protecting investors’ interests in the securities market.
