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Markets regulator Sebi on Monday imposed a penalty of Rs 1 crore on Anmol Ambani, son of industrialist Anil Ambani, for his failure to exercise due diligence while approving general-purpose corporate loans in Reliance Home Finance matter. Additionally, the regulator levied a fine of Rs 15 lakh on Krishnan Gopalakrishnan, who was the Chief Risk Officer of Reliance Housing Finance. Both have been directed to pay the amount within 45 days, the Securities and Exchange Board of India (Sebi) said in its order. The order came after Sebi, in August, barred Anil Ambani and 24 others from the securities market for five years in a case pertaining to diversion of Reliance Home Finance Ltd's funds. Also, a fine of Rs 25 crore was levied on him. In its order on Monday, Sebi noted that Anmol Ambani, who was on the board of Reliance Home Finance, had approved general-purpose corporate loans or GPCL loans, and that too after the company's board of directors had given clear direction not to go ahead
Anil Ambani's Reliance Group has in recent years seen marquee firms being auctioned in insolvency proceedings and piling debt-fold businesses. But the group has, in the week gone by, made announcements that investors believe may mark its transformation. In three days -- from September 18 to September 20 -- the group announced it has turned into nearly zero and is implementing long-term fund raising plans that are said to solidify its financial position. Reliance Infrastructure's board approved fund raising of up to Rs 6,000 crore via preferential issue and QIP, while Reliance Power board is meeting on September 23 to consider and approve the fundraise via multiple routes. The speed at which Anil Ambani moved to clear the debt of his companies, and simultaneously announce and execute the fund raising plans for future expansion of his companies, has surprised the investors. Shares of both firms surged on stock markets. The announcement to invest Rs 1,100 crore by the promoters group