Thread by @barandbench

SEBI imposes Rs 25 crore penalty on Mukesh, Anil Ambani and ors for violation of Takeover Regulations

[READ ORDER]

#MukeshAmbani #SEBI #Ambani
barandbench.com/news/litigatio…

The cases goes back to 2000 and concerns alleged irregularities relating to the issue of 12 crore equity shares in January 2000 by Reliance Industries Limited (RIL) at a price of Rs. 75 per share to 38 allottee entities.

As per Regulation 11(1) of Takeover Regulations, RIL was obligated not to make additional acquisition of more than 5% of voting rights in any financial year unless it made a public announcement to acquire shares.

Since the RIL promoters and Persons Acting in Concert (PACs) did not make any public announcement for acquiring shares, it was found that the Ambanis violated Regulation 11(1).

The SEBI also noted that no quantifiable figures or data are available on record to assess the disproportionate gain or unfair advantage and amount of loss caused to an investor or group of investors as a result of the default.

But the Noticees by their failure to make public announcement, deprived the shareholders of their statutory rights/ opportunity to exit from the
company.

#SEBI #Ambanis #MukeshAmbani #anilAmbani

The following are the entities in which liability has been fastened.