You are here: Home » Companies » News
Business Standard

Mukesh Ambani to appeal against Rs 25-crore penalty imposed by Sebi

Reliance Industries Chairman Mukesh Ambani will appeal against the fine imposed by market regulator Sebi over alleged irregularities in a two-decade-old share issue in the company, the firm said

Mukesh Ambani | Reliance Industries

Press Trust of India  |  New Delhi 

Mukesh Ambani. Photo: Bloomberg
Mukesh Ambani. Photo: Bloomberg

Chairman will appeal against the fine imposed by market regulator over alleged irregularities in a two-decade-old share issue in the company, the firm said on Thursday.

Ltd (RIL) had issued debentures with convertible warrants in 1994 and allotted equity shares against the warrants in 2000.

This was when Dhirubhai Ambani was heading the undivided company.

"had issued a show-cause notice in February 2011 (more than 11 years after the acquisition of shares) to then promoter and promoter group (as in the year 2000) alleging violation" of takeover regulations, the company said in a stock exchange filing on Thursday.

The show-cause notice has now been adjudicated (21 years after the acquisition of shares) and a penalty of Rs 25 crore levied on then promoter and promoter group -- brothers Mukesh and Anil (who had split the company after the death of their father in 2002) and other individuals.

"The promoter and promoter group have informed RIL that there has been no violation of Regulation 11(1) of the 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," the filing said.

SEBI had penalised Ambani brothers and other promoter family members for not making regulatory disclosures when they collectively raised their shareholding in RIL by nearly 7 per cent by subscribing to the January 2000 issue.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 08 2021. 18:28 IST