The markets regulator, Sebi, imposed a penalty of Rs 10 million on Anmol Ambani, the son of industrialist Anil Ambani, for failing to exercise due diligence when approving general-purpose corporate loans related to Reliance Home Finance. In addition, a fine of Rs 1.5 million was levied on Krishnan Gopalakrishnan, the Chief Risk Officer of Reliance Housing Finance. Both individuals have been instructed to pay the penalties within 45 days, as stated in Sebi's order. This action follows a decision by Sebi in August to bar Anil Ambani and 24 others from the securities market for five years due to a case involving the diversion of funds from Reliance Home Finance. Anil Ambani was also fined Rs 250 million. In its recent order, Sebi highlighted that Anmol Ambani, who was part of the board at Reliance Home Finance, had approved general-purpose corporate loans (GPCL), despite clear instructions from the company’s board not to proceed with any such approvals. Specifically, Anmol Ambani authorised a loan of Rs 200 million to Accura Productions on February 14, 2019, even though the board had directed the management not to issue any further GPCL loans in a meeting held on February 11, 2019. Sebi noted that Anmol Ambani, in his capacity as a non-executive director, had deviated from the board’s directives and acted beyond his role. The regulator remarked that Anmol Ambani appeared to be motivated and acted contrary to the interests of the shareholders, failing to demonstrate due care and diligence while not upholding high ethical standards. Furthermore, Sebi mentioned that Anmol Ambani was a member of the boards of Reliance Capital and Reliance Home Finance and served as a director for other Reliance ADAG group companies that received funds. He reportedly did not exercise reasonable due diligence regarding the overall GPCL lending and the subsequent lending by these GPCL entities to other Reliance ADAG group companies, including Reliance Capital. Sebi also indicated that Gopalakrishnan had approved various GPCL loans and was cognizant of the significant deviations documented in the credit approval memos for the loans he had recommended while serving as the CRO of the company.