Lawstreet Journal

Imposition of ₹ 25 Crores Penalty on Mukesh Ambani, Anil Ambani & Family for Irregularities in RIL Shareholding By SEBI [READ SEBI ORDER]

Lawstreet Journal 9 Apr 2021 7:03pm

Image courtesy: Lawstreet Journal Business Imposition of ₹ 25 Crores Penalty on Mukesh Ambani, Anil Ambani & Family for Irregularities in RIL Shareholding By SEBI  [READ SEBI ORDER]

A penalty of Rs. 25 Crores has been imposed on family members of the Ambani Family, namely, Mukesh Anil Ambani, Nita Ambani, Tina Ambani,  and few others by the Security and Exchange Board of India. 

This penalty has been imposed on them on the issue of irregularities pertaining to the issue of 12 crore equity shares in January 2000 by Reliance Industries Ltd at a price of Rs.75 per share to 38 allottee entities. There have been violations of Regulation 11(1) of the Takeover Regulations.

The allotment had been made consequent to the exercise of the option on warrants attached with 6,00,00,000-14% Non-Convertible Secured Redeemable Debenture (NCD) of Rs.50/-each aggregating to Rs.300,00,00,000 (PPD IV) issued in the year 1994. It was observed that it had disclosed the above mentioned 38 allottee entities as Persons Acting in Concert("PACs") with the RIL promoters as from the disclosure that was filed under Regulation8(3) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations,1997 ("Takeover Regulations") by RIL to Bombay Stock Exchange (BSE) on April 28, 2000. 

It was further observed as from the aforesaid disclosures that were made by RIL that the shareholding of RIL promoters together with PACs had increased from 22.71% as on March31, 1999 to 38.33% as on March31, 2000. Out of these, 7.76% shares were acquired consequent upon a merger and thus were exempt under regulation 3(1) (j) (ii) of Takeover Regulations. However, 6.83% shares that were acquired by RIL promoters together with PACs in exercise of 3… Continue Reading...

Tagged: Reliance Industries   Reliance Industries Limited   Reliance   SEBI  
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