New Delhi: The Securities and Exchange Board of India (SEBI) has imposed a five-year market ban on Anil Ambani and 24 other entities. This ban prohibits them from participating in the securities market for five years including former executives of Reliance Home Finance Limited (RHFL). Following the five-year ban imposed by SEBI, Anil Ambani, Chairman and Managing Director of the Reliance Anil Dhirubhai Ambani Group (ADAG), is prohibited from directly or indirectly participating in the securities market. However, this is not the final verdict for Ambani, as he has the option to contest SEBIs decision in the Reliance Home Finance loan scandal case by appealing to the Securities Appellate Tribunal (SAT) and requesting a stay on the order issued on August 22, 2024.Wait for SATs verdictMarket analysts anticipate that Anil Ambani will soon file an appeal with the Securities Appellate Tribunal (SAT) against SEBIs order, now that the weekend is over. They predict a swift decision from SAT, potentially granting a stay on the order. As a result, shares of Reliance ADAG are likely to experience significant volatility in the near term.Anil Ambanis next moveAnil Ambanis next step after SEBIs ban will likely be to appeal to the Securities Appellate Tribunal (SAT) in Mumbai, according to Awanish Kumar Mishra, Founder of the Center for Financial Inclusion and Planning. Mishra notes that Ambani has already complied with SEBIs order by resigning as Director of listed companies and paying a ₹25 crore fine. He can now seek a stay on the orders execution from SAT.Regarding the timeline for SATs verdict, Mishra states “Taking a cue from the NSE co-location scam, the NSE had also moved to SAT on the very next date of the SEBIs crackdown, and SEBI gave a stay on SEBI order on the same date of NSEs appeal. So, I expect the same speed to be taken by SAT provided Anil Ambani exercises this SAT option to challenge the SEBI order banning him from the security market for five years.”
