The market regulator Securities and Exchange Board of India (SEBI) has imposed a total fine of Rs 25 crore on industrialists brothers Mukesh Ambani and Anil Ambani, other individuals and units in a two-decade-old case. The regulator imposed this penalty in 2000 for violating the acquisition rules relating to Reliance Industries. The Securities and Exchange Board of India (SEBI) has also fined the Ambani brothers as well as Nita Ambani and Tina Ambani. Neeta Ambani is the wife of Mukesh Ambani, the richest person in the country. At the same time, Tina Ambani is the wife of industrialist Anil Ambani. SEBI, in its 85-page order, said that RIL’s promoters and individuals acting in concert (PACs) failed to provide information on the acquisition of more than five per cent stake in the company in 2000.
According to the order issued by SEBI, RIL promoters acquired 6.83 percent stake in the company in 2000. It was acquired by converting 3 crore warrants issued in 1994. Sebi says the acquisition was more than the 5 per cent limit prescribed under the Regulations.
SEBI has found that the promoters and PACs did not make any public announcement regarding the acquisition of the shares. Since the promoters and PACs did not make public announcements about the acquisition of the shares, it alleged that they violated the provisions relating to the acquisition rules.
According to the order, various individuals and entities failed to make public announcements, thereby denying shareholders their right or opportunity to exit the company. In this case, the regulator has imposed a total fine of Rs 25 crore. This penalty amount is to be paid jointly by the individual and units concerned.
