India’s financial markets regulator has rejected applications by ‌industrialist Anil Ambani and his corporate group to settle allegations of misusing ​almost $700 million of company funds, documents reviewed by Reuters show.

The Securities and Exchange ⁠Board of India last week rejected the requests over allegations that Ambani and Reliance Infrastructure were involved in improperly routing 65.26 billion rupees ($691 million) to entities related to controlling shareholder Ambani, the documents show.

Mr. Ambani, the younger brother ‌of billionaire Mukesh Ambani, has faced growing scrutiny from regulators and enforcement agencies over the past 18 months. Several group executives have been arrested on fraud charges, and some of Anil Ambani’s properties have been frozen. The executives have denied wrongdoing, and ‌the ⁠cases are still in the courts.

The documents reviewed by Reuters show that ⁠SEBI alleged in September that the transactions involving Mr. Ambani and Reliance Infrastructure were a “mis-utilisation of company funds”, as they could potentially be for personal enrichment rather than serving a corporate purpose for public shareholders.

Ambani Group ‘categorically’ denies allegations

Asked for comment, ​a spokesperson for the Anil Ambani group said ‌in an email: “The allegations are categorically denied. The matters are sub judice, and the Group will continue to defend its position as legally advised.”

SEBI did not respond to an emailed request for comment.

The regulator’s rejection of the settlement requests and its specific allegations have ‌not previously been reported. Reliance Infrastructure said in an October exchange filing that SEBI ​had alleged it violated rules over its financial exposure to a connected entity, without disclosing details.

In rejecting the settlement applications, SEBI cited parallel investigations by other ⁠Indian enforcement agencies, including India’s financial crime and fraud investigative agencies, the documents reviewed by Reuters showed.

This is the second settlement rejection for Ambani. SEBI last year rejected his plea to settle allegations ‌in a case related to investments in India’s Yes Bank.

Under SEBI’s settlement process, a company can pay a penalty to settle a case without admitting wrongdoing. If it rejects a settlement, SEBI typically then issues a detailed public order outlining the alleged violations, with consequences ranging from monetary penalties to restrictions on accessing the capital markets. Companies and entities may appeal against such orders in court.

Reliance Infrastructure is looking to tap the markets for what it says is a vital ‌fund-raising, having secured board approval to raise up to 30 billion rupees from the public.

The company previously disclosed ​an exposure of about 65.26 billion rupees to engineering contractor CLE Private Ltd, which it described as an independent entity.

But SEBI alleged a far larger movement ⁠of funds, saying Reliance Infrastructure diverted 176.7 billion rupees ($1.9 billion) to CLE, which then invested at least 112 ⁠billion rupees in firms linked to the Ambani-led Reliance ADA Group over a decade through 2024.

And rather than being an independent company, SEBI determined, “for all practical purposes, CLE ‌functioned as a Reliance ADA Group company” that was “indirectly controlled” by Ambani and a few other officials, according to the documents.

An email seeking comment from CLE, sent to its last ​cited address in India’s company registry, was not immediately answered on Friday (June 26, 2026).