The Securities and Exchange Board of India (SEBI) has fined Mukesh Ambani, Anil Ambani, and nine other individuals and organizations in connection with involvement irregularities resulting from a breach of the Regulator’s Takeover Code 25 billion rupees imposed.
As early as January 2020, the promoters’ stake in Reliance Industries rose 6.83 percent after converting 3 crore warrants in 1994. However, it was alleged that the promoters group did not have an open offer under the Securities and Exchange Board of India (India). Significant acquisition of shares and takeover), 1997.
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According to the applicable regulations, a promoter group that acquires more than 5 percent of the shares must make an open offer to minority investors within the current financial year. In its order, SEBI mentioned that the promoter group and other announcements violated rule 11 (1) of the Takeover Regulations in the case.
“It should be noted that the announcements in the present case allegedly did not make a public announcement of the acquisition of RIL shares and deprived shareholders of their legal rights / options to exit the target company and therefore violated the provisions of the takeover regulations. Such charges against the notices make the current matter serious, “said SEBI.
In its verdict, SEBI fined Mukesh Ambani, Anil Ambani, Kokilaben Ambani, Nita Ambani, Tina Ambani, Reliance Industries Holding, Reliance Realty and others a fine of 25 billion rupees. The market regulator ordered the fine to be paid jointly and severally.
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“In the event of non-payment of the specified fine within 45 days of receipt of this decision, SEBI may take follow-up action, including, but not limited to, recovery procedures under Section 28A of the SEBI Act of 1992, in order to realize the specified amount of the fine along with interest, under among other things through the seizure and sale of movable and immovable property “, judged SEBI.
SEBI made it clear that it is unable to evaluate the unfair profits or beneficiaries generated by violating takeover rules. However, the regulator alleged that the promoters were denying minority investors their legal rights.
“… there are no quantifiable figures or data to assess the disproportionate gain or unfair advantage and the amount of loss suffered by any investor or group of investors as a result of the notice’s failure The fact that the notices, that they were not made public, deprived shareholders of their legal rights / opportunities to exit the company, “said SEBI in its appointment.
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