This fine has been imposed in 2000 for not following the acquisition rules in the case related to Reliance Industries.
Mukesh Ambani-Anil Ambani
The market regulator Sebi imposed a fine of Rs 25 crore on the country’s richest man Mukesh Ambani, his younger brother Anil Ambani and other individuals and units. SEBI has fined the Ambani family in a two-decade-old case. This fine has been imposed in 2000 for not complying with the acquisition rules in the case related to Reliance Industries. Others who have been fined include Nita Ambani, Tina Ambani, KD Ambani and other family members. Neeta is the wife of Mukesh Ambani while Tina is the wife of Anil Ambani.
The Securities and Exchange Board of India (SEBI), in its 85-page order, said that RIL promoters and PACs (people working in amalgamation) had disclosed about the acquisition of more than 5 per cent in the company in 2000. Failed
In 2005, Mukesh and Anil split up after splitting the business.
Mukesh and Anil separated in 2005 by splitting the business. As per the order, RIL promoters acquired 6.83 per cent stake in the company in 2000. This acquisition was done by replacing 3 crore warrants issued in 1994.
According to Sebi, RIL promoters, along with PAC, acquired a 6.83 per cent stake by exercising the option to convert the warrants related to non-convertible secured debentures into shares. This acquisition was over the 5 per cent limit prescribed under the regulation.
In this matter of order, he was required to publicly declare the share acquisition on January 7, 2000. On the same date, RIL’s equity shares were allotted to PAC on the basis of warrant issued in 1994.
Violation of rules
However, SEBI found that the promoters and the PAC did not make any public announcement about the share acquisition. Hence, they violated the takeover rules.
Under SEBI rules, the promoter group has acquired more than 5 percent voting rights in any financial year, for that it is required to make an open offer to minority shareholders.
SEBI said that the people and units concerned have to pay the penalty jointly and severally.
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