Securities Appellate Tribunal (SAT) on Friday has set aside Securities and Exchange Board of India's (SEBI) Rs 25-crore penalty on Reliance Industries Ltd chairman Mukesh Ambani.
SEBI has been directed to refund the penalty of Rs 25 crore.
In 2021, SEBI had fined 15 members of Ambani family, including Mukesh Ambani and Anil Ambani, for violating provisions of the Takeover Code.
SAT said imposition of penalty upon the appellant is without any authority of law and it also found that appellants have not violated Regulation 11(1) of SAST.
SAST stands for Substantial Acquisition of Shares and Takeovers Regulations, 2011.
Back in January 2020, promoter stake in Reliance Industries increased by 6.83 per cent after conversion of 3 crore warrants issued in 1994. However, it was alleged that the promoter group failed to make an open offer in accordance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations.
As per extant regulations, a promoter group acquiring more than 5 per cent stake needs to make an open offer to minority investors within the ongoing financial year. In its order SEBI mentioned that the promoter group and other noticees in the case violated Regulation 11(1) of takeover regulations.
In its verdict, SEBI imposed a fine of Rs 25 crore on Mukesh Ambani, Anil Ambani, Kokilaben Ambani, Nita Ambani, Tina Ambani, Reliance Industries Holding, Reliance Realty and others.
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