The Securities and Exchange Board of India (SEBI) has rejected a plea by Anil Ambani to settle charges in the Yes Bank case, which is likely to expose him to a penalty of around close to Rs 1,828 crore, according to a SEBI official.
According to the official, the investment was allegedly made by Anil Ambani’s companies in exchange for loans from Yes Bank to other group companies.
Allegedly, Ambani’s Reliance Mutual Fund had invested Rs 2,150 crore in Yes Bank’s additional Tier-1 bonds between between 2016 and 2019. These bonds were written off when the bank declared insolvency in 2020.
The SEBI had, earlier, stated that investments were made in return for loans which Yes Bank extended to other Ambani group companies. According to its estimates, losses suffered by investors amounted to Rs 1,828 crore, and flagged the case as having a “market-wide impact.”
Anil Ambani, his son Jai Anmol Ambani, and former Yes Bank CEO Rana Kapoor had earlier sought a settlement without admitting their guilt. However, SEBI rejected their offer and is in the process of sending directions to Anil Ambani and his son, asking them to compensate investors.
SEBI has also forwarded its findings to the Enforcement Directorate (ED). This could mean a possible escalation of the case to a criminal or money-laundering probe.