While issuing the notice, SEBI imposed a fine of Rs 25 crore on Mukesh Ambani, Anil Ambani, Kokilaben Ambani, Neeta Ambani, Tina Ambani, Reliance Industries Holding, Reliance Realty, and others.
SEBI (Securities and Exchange Board of India) has imposed fines on Mukesh Ambani, Anil Ambani and nine other individuals and entities in relation to irregularities in stake arising out of violation of regulatory takeover rules.
After conversion of 3 crore warrants issued in 1994, the promoter’s stake in Reliance Industries increased by 6.83 percent back in January 2020. However, it was alleged that the promoter group failed to make an open offer as per Securities and Exchange Board of India.
As per the rules, the promoter group, which has a stake of more than 5 percent, is required to make an open offer to minority investors within the current financial year. SEBI in its notice noted that the promoter group and other notices in the case violated Regulation 11 (1) of the acquisition rules.
“It is noted that the notice in the instantaneous case alleges that RIL has failed to make a public declaration to acquire the shares and gave shareholders / deprived of their statutory rights an opportunity to exit the target company. And so they violated the provisions. “
“SEBI Board may initiate consequential action if it fails to pay the amount of the penalty within 45 days of receipt of the order, including but not limited to recovery proceedings under section 28A of the SEBI Act, 1992 Is for. ” The amount of the penalty along with the amount of interest, inter alia, sale of movable and immovable properties, stated to be “governed by SEBI”.
SEBI has made it clear that it is unable to assess the undue benefit or profit promoters who violated the takeover rules. However, the regulator said the promoters had deprived minority investors of their statutory rights.
“No quantitative figures or data are available on record to estimate the amount of undue profit and loss that may result to an investor or group of investors as a result of a default made by the notice. However, the notice still remains. SEBI said in its order, their failure to make a public announcement deprives shareholders of their statutory rights /opportunity to exit the company.