Business News: Mukesh Ambani Gets Relief From Giving Penalty Worth Rs 40 Cr in a 16-Year-Old Case
Mukesh Ambani Penalised: The directive from market regulator SEBI to fine Reliance Industries and two other companies has been revoked by the Securities Appellate Tribunal (SAT). The fine was applied in a matter involving alleged share manipulation of the former Reliance Petroleum Limited (RPL) in November 2007. A report claims that in January 2021, the Securities and Exchange Board of India (SEBI) approved the imposition of a fine. Reliance Industries Limited (RIL) was fined Rs 25 Cr, Navi Mumbai SEZ Private Limited (Rs 20 Cr), Mumbai SEZ Limited (Rs 10 Cr), and the company’s Chairman and Managing Director Mukesh Ambani, all received fines from SEBI in the RPL case.
Why Was Mukesh Ambani Fined?
The case concerns the cash and futures segment sales and purchases of RPL shares in November 2007. Reliance decided to sell nearly 5% of its stake in RPL, a publicly traded subsidiary that merged with RIL in 2009. At the time, SEBI officer BJ Dilip, who investigated the case and issued the decision, admitted that manipulating the number or price of securities always reduces investors’ confidence in the market.
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