Sebi disposes of proceedings against RIL in a debentures issue matter

Markets regulator Sebi today disposed of proceedings against Reliance Industries in a case relating to alleged failure of the company to furnish requested information about a decade-old debentures issue.
The case pertains to private placement of debentures by Reliance and its conversion into equity shares back in 2007.
With regard to the issue, the watchdog had sought information from Reliance Industries and seven other entities.
The entities were Reliance Utilities and Power, Reliance Ports and Terminals, Uditi Mercantile, Ekansha Enterprise, Saumya Finance & Leasing Co. and Reliance Infocomm Infrastructure.
These entities were asked to submit information on categorisation of directors and for alleged failure to provide the required details, adjudication proceedings were initiated against them.

In his order today, Sebi's Adjudicating Officer Biju S said the case needs to be seen against the backdrop that the investigation was over and the ensuing show cause notice is pending before Sebi for settlement.

"... the failure to furnish information as alleged in the show cause notice dated November 26, 2015, has to be viewed in the background of the facts and circumstances pertaining to the present case.
"This is especially so considering the fact that investigation was concluded and further, the noticees have filed settlement applications in respect of the show cause notices issued in the matter," the order said.

Citing this scenario, the order said it does not warrant imposition of monetary penalty and disposed of the adjudication proceedings.