Sebi moves sessions court against RIL for violation of Companies Act

Reliance Industries (RIL) has disclosed that the markets regulator Securities and Exchange Board of India (Sebi) has moved the Sessions Court against it for alleged violation of the Companies Act and Sebi regulations. The company said the matter pertains to the issue of debentures with convertible warrants two decades ago.

“RIL co-operated with Sebi and has produced abundant evidence establishing that RIL has not violated Section 77 of the Companies Act. Sebi has not issued a show cause notice to RIL. There has been no adjudication of this alleged violation under Section 15-I of the Sebi Act, 1992. Notwithstanding this, Sebi has chosen to file the proceedings in the Sessions Court in this matter,” the company said in a stock exchange notification on Wednesday.

It further said, “The alleged violation of Sebi (Substantial Acquisitions of Shares and Takeover) Regulations, 1997, by the promoters and promoter group of RIL is no more than a technical non-compliance of filing of post-acquisition return in 2000. Sebi has already issued a show cause notice for levy of a penalty of Rs 5 lakh and the matter is under adjudication.”