Mukesh Ambani to challenge SEBI's Rs 25 crore fine in SAT
RIL said the promoter and promoter group have informed the company that there was no violation of takeover regulations and they had complied with the applicable laws.
Reliance Industries Ltd (RIL) CMD Mukesh Ambani will challenge in the Securities Appellate Tribunal (SAT) the SEBI order imposing Rs 25 crore fine for violation of takeover regulations.
On Wednesday, the Securities and Exchange Board of India had fined Ambani, Anil Ambani, Nita Ambani, Tina Ambani and other individuals and entities for non-compliance with takeover norms in a case dating back to 2000.
RIL had issued debentures with convertible warrants in the year 1994 and allotted equity shares against the warrants in the year 2000. SEBI had issued a show cause notice in February 2011 to the then promoter and promoter group (as in the year 2000) alleging violation of Regulation 11(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997, RIL said in an exchange filing.
The promoter stake in RIL increased by 6.83 per cent in January 2000 after conversion of 3 crore warrants. However, the promoter group failed to make an open offer in accordance with SEBI regulations, the regulator said while imposing the fine of Rs 25 crore.
SEBI said it was unable to assess the unfair gains or advantage the promoters reaped by violating the takeover regulations, but maintained that the promoters denied minority investors their statutory rights.
In the filing, RIL said the promoter and promoter group have informed the company that there was no violation of takeover regulations and they had complied with the applicable laws.
"An appeal will be preferred to the Securities Appellate Tribunal and they remain confident of vindicating their position," it said.
On Thursday, shares of RIL closed 0.11 per cent higher at Rs 2,005 on the BSE.