SEBI slaps Rs 25 crore penalty on Ambani brothers, family

Mangalore Today News Network

New Delhi, April 08, 2021:      Market watchdog SEBI on Wednesday slapped a total penalty of Rs 25 crore on Mukesh Ambani, Anil Ambani, their wives, and certain other family members in a case that dates back two decades to 2000.

 

Apart from Mukesh and Anil ambani, those penalised include Nita Ambani, Tina Ambani, K D Ambani, and other family members. Nita is the wife of Mukesh Ambani and while Tina is married to Anil Ambani.
According to the regulator’s 85 page order, Reliance Industries’ promoters and Persons Acting in Concert (PAC) had failed to disclose the acquisition of a 6.83 per cent stake RIL in 2000.

The businesses had later been split up between Mukesh and Anil Ambani in 2005 after the death of their father Dhirubhai Ambani. Sebi noted that RIL’s promoters had acquired stake in 2000 through the conversion of 3 crore warrants issued to them back in 1994. This was in excess of the 5 per cent ceiling mandated for such takeovers under the law.

Thus, SEBI said, the obligation to make a public announcement about acquiring the shares arose on January 7, 2000, the date on which the equity had been issued. Under SEBI norms, a promoter group acquiring more than 5 per cent of the voting rights, in any financial year ending March 31, is required to make an open offer to minority shareholders.

“No quantifiable figures or data are available on record to assess the’ disproportionate gain or unfair advantage... However, the fact remains that the noticees by their failure to make public announcement deprived the shareholders of their statutory rights/ opportunity to exit from the company,” the regulator said.

Courtesy:Indian Express