SAT sidelines SEBI's decision to fine Reliance Industries 25 crores

31 Jul 2023 , 02:20 AM

According to ETNOW, the Securities Appellate Tribunal (SAT) has overturned the fine levied against Reliance Industries Chairman Mukesh D. Ambani by the Securities and Exchange Board of India (SEBI) for breaking takeover rules.

The appellate tribunal contends that Ambani did not violate any regulations and that the regulator lacked the power to impose the punishment.

For alleged violations of takeover regulations, SEBI fined the current and past promoters of RIL, including Mukesh Ambani, Anil Ambani, their mother, spouses, and children, as well as other family members and entities connected to them, Rs 25 crore in April 2021.

The shares worth Rs 12 crore that RIL granted to 38 organizations in January 2000 in accordance with the conversion of warrants constitute a takeover rule violation.

According to the regulator, the 6.83% share that RIL’s promoters and a few other organizations purchased exceeded the 5% cap imposed by the takeover requirements for promoters.

According to SEBI regulations, a promoter must publicly report their acquisition of shares if they get more than 5% of the voting rights in any fiscal year.

The promoters of RIL were sent show cause notices by the capital market watchdog in February 2011, and some of the firms filed settlement petitions six months later. SEBI rejected their bids for settlement after nearly ten years of filing.

Then, RIL’s promoters started legal actions because the case hadn’t been resolved for a long period of time.

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