The Indian market regulator has denied businessman Anil Ambani's request to resolve allegations pertaining to his investments in lender Yes Bank, which could result in a minimum penalty of Rs 1,828 crore ($208.4 million).

Charges existed prior to the 2019 sale of Reliance Mutual Fund to Nippon Life Insurance.

According to a regulatory notice, the investment was made in return for loans from Yes Bank to other Anil Ambani group entities, according to the Securities and Exchange Board of India's (SEBI) investigation.

The regulator stated on July 7 that the fund's actions had a "market wide impact" and resulted in an 18.28 billion rupee loss in investor worth, rejecting Ambani's attempts to resolve the accusations without acknowledging guilt.

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The interactions between Anil Ambani's companies and Yes Bank, which was deemed bankrupt in 2020 and saved by a consortium of lenders in a central bank-approved plan, are coming under closer examination.

The settlement offer made by Anil Ambani, his son Jai Anmol Ambani, and former Yes Bank CEO Rana Kapoor has not been approved.

According to records, SEBI has notified Ambani and his son that it will issue directives requesting that they reimburse the investors.

Documents revealed that financial penalties could be part of further proceedings.

 

There have been no prior reports of the settlement rejection, potential regulatory action, or SEBI sharing its findings with the Enforcement Directorate.

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Meetings between Ambani and fund house personnel throughout the aforementioned investigations are mentioned in the notification. Emails in which Kapoor described investments into Reliance Group companies as a "bilateral relationship deal" were also referenced.

The fund house, its CEO, chief investment officer, and previous chief risk officer have also been charged by SEBI letters for claimed investor losses.