What alternatives are available for Anil Ambani post SEBI’s ban from the securities market?
Anil Ambani may contest the SEBI's ruling at the Securities Appellate Tribunal (SAT) and seek a stay on the order of August 22, 2024.
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The CMD of Reliance Anil Dhirubhai Ambani Group (ADAG), Anil Ambani, has been banned from the securities market for five years by the Securities and Exchange Board of India (SEBI). This means that he will not be able to engage in the securities market either directly or indirectly. Anil Ambani still has options, though, as he can appeal the SEBI's ruling to the Securities Appellate Tribunal (SAT) and request a stay on the SEBI's order dated 22nd August 2024.
Anil Ambani's spokesperson said in a statement on Sunday that he is examining the Securities and Exchange Board of India (Sebi) judgment that prohibited him from the securities market for five years in connection with an alleged fund diversion issue and that he will take the necessary action as advised by his lawyers.
Experts anticipate that Anil Ambani may soon approach the SAT to challenge SEBI's order.They added that it would not take long for SAT to halt or postpone the SEBI's decision. As a result, it is anticipated that Reliance ADAG stocks will continue to be extremely volatile.
Anil Ambani’s SAT Consideration
Commenting on the incident, Awanish Kumar Mishra, Founder of the Center for Financial Inclusion and Planning, said, "In compliance with the SEBI order dated 22nd August 2024, para 75(iii), Anil Dhirubhai Ambani resigned from the post of Director of listed companies. He has been fined ₹25 Crore. He can move against SEBI above Order in Securities Appellate Tribunal (SAT), Mumbai and plead for stay over execution of this order."
Further speaking on the time it may take for the SAT to issue its ruling, Mishra stated, “Taking a cue from the NSE co-location scam, the NSE had also moved to SAT on the very next date of the SEBI's crackdown, and SEBI gave a stay on SEBI order on the same date of NSE's 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.”
