Markets

RIL promoters to appeal against SEBI penalty

Our Bureau Mumbai | Updated on April 08, 2021

Mukesh Ambani   -  PAUL NORONHA

Promoters of Reliance Industries Ltd will file an appeal with the Securities Appellate Tribunal against SEBI’s decision to impose a penalty of ₹25 crore on Mukesh Ambani family and firms linked to the promoter group for violation of takeover code regulations in 2000.

“The promoter and promoter group have informed RIL that there has been no violation of Regulation 11(1) of the SEBI Takeover Regulations and they have complied with applicable laws; and an appeal will be preferred to the Securities Appellate Tribunal and they remain confident of vindicating their position,” RIL said in stock exchange filings.

On Wednesday, SEBI imposed a penalty of ₹25 crore on the Ambani family and firms linked to the promoter group for violation of takeover code regulations in 2000. In January 2000, the promoter stake in RIL had increased by 6.83 per cent following the conversion of warrants issued in 1994.

The fine has now been imposed on the family led by both Mukesh Ambani and his younger brother Anil Ambani, which includes their mother, Nita Ambani, Tina Ambani and their children.

Under the regulations, a promoter group acquiring more than 5 per cent of voting rights in any financial year ending March 31 needs to make an open offer to minority investors. “It is noted that in the instant matter the notices have been alleged to have failed to make public announcement to acquire shares of RIL and deprived the shareholders of their statutory rights/opportunity to exit from the target company and therefore they breached the provisions of Takeover Regulations. Such charges against the noticees make the instant matter grave,” SEBI’s order on Wednesday said.

Published on April 08, 2021

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