SEBI has chosen to let Reliance Home Finance off with a light fine, when it should have initiated a forensic audit based on lapses.
Last Tuesday, the Securities and Exchange Board of India passed an order on Reliance Home Finance, a company that borrowed over Rs 12,000 crore from banks and investors and defaulted. The order was the culmination of a show-cause notice dated 5 August 2021, which sought an explanation from the company for lapses in disclosures between 1 April 2019 and 26 March 2020.
During the period, the company had not made mandatory critical disclosures to stock exchanges. The disclosures were necessary to determine if the company’s debt instruments, especially non-convertible debentures, were 100% backed by asset cover to ensure that they …
Surendar helps lead the newsroom at The Morning Context as executive editor. Over the years, Surendar has worked in industries from pharmaceuticals to diamonds, as well as a stint as an equity analyst. In his long career as a business journalist, he has led teams at The Times of India, India Today and Fortune India. He was part of the founding team at Forbes India and interned at and published in The Times, London.
Executive Editor
surendar@mailtmc.com
Mumbai