RIL promoters to move SAT against Sebi’s Rs 20 cr penalty
“The promoter and promoter group have informed RIL that there has been no violation of Regulation 11(1) of the SEBI Takeover Regulations and they have complied with applicable laws and an appeal will be preferred to the Securities Appellate Tribunal and they remain confident of vindicating their position,” RIL said in a stock exchange filing.
Market regulator Sebi on Wednesday imposed a total penalty of Rs 25 crore on current and former promoters of RIL, including Mukesh Ambani, Anil Ambani, their mother, spouses and children, other family members and entities linked to them for alleged violation of takeover rules.
In January 2000, RIL had issued 120 million equity shares to 38 allottee entities.
The allotment was made consequent to the exercise of the option on warrants attached with Non Convertible Secured Redeemable Debentures (NCD) issued in the year 1994.
The regulator alleged that the 6.83% stake which was acquired by RIL’s promoters together with persons acting in concert (PACs) in 2000, were in excess of the ceiling of 5% prescribed in the takeover code.
Under Sebi rules, if a promoter acquires more than 5% of voting rights in any financial year then they have to make a public announcement to acquire shares.
“It is noted that in the instant matter the noticees (promoters of RIL) have been alleged to have failed to make public announcement to acquire shares of RIL and deprived the shareholders of their statutory rights / opportunity to exit from the Target Company and therefore they breached the provisions of Takeover Regulations. Such charges against the noticees make the instant matter grave,” Sebi said in its order on Wednesday.
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