Sebi imposes penalty of Rs 25 crore on Mukesh Ambani and Anil Ambani
Market regulator Sebi on Wednesday imposed a total penalty of Rs 25 crore on Mukesh Ambani, Anil Ambani, other individuals and entities for non-compliance with takeover norms in a Reliance Industries case dating back to 2000.
Others penalised by the watchdog include Nita Ambani, Tina Ambani, K.D. Ambani and other family members. Nita is the wife of Mukesh Ambani and Tina is Anil Ambani’s spouse.
RIL’s promoters and Persons Acting in Concert (PAC) failed to disclose the acquisition of more than 5 per cent stake in the company way back in 2000, Sebi said in its 85-page order.
In 2005, Mukesh and Anil had split the business empire built by their father Dhirubhai Ambani. According to the order, RIL’s promoters acquired 6.83 per cent stake in the company during 2000 through conversion of 3 crore warrants issued to them back in 1994.
Sebi noted that 6.83 per cent shares that were acquired by RIL promoters together with PACs consequent to exercise of option on warrants attached with non-convertible secured redeemable debentures were in excess of ceiling of 5 per cent prescribed under the takeover regulations.
Thus, the obligation to make a public announcement about acquiring the shares arose on January 7, 2000. This was the date on which the PACs were allotted RIL equity shares on exercise of warrants issued in January 1994, the order noted. However, Sebi found that the promoters and PACs have not made any public announcement for acquiring the shares.
As the promoters and PACs have not made any public announcement for acquiring shares, it is alleged that they have violated the provisions of the takeover regulations.
Mukesh Asia’s richest
Reliance Industries chairman Mukesh Ambani has reclaimed his position as Asia’s richest person, dethroning Chinese business tycoon Jack Ma in Forbes magazine’s new list of global billionaires.
Ma was the richest person in the region a year ago but has tumbled to the 26th spot
in this year’s list even though his fortune swelled almost $10 billion to $48.4 billion. Ambani’s fortune grew to $ 89 billion.
Jeff Bezos of Amazon has been ranked as the richest person for the fourth year running with a net worth of $177 billion, up $64 billion from a year ago.