SEBI means Securities and Exchange Board of India has imposed a fine of Rs 25 crore on the existing and former promoters of Reliance Industries. This fine has been imposed for violating the rules of acquisition. Those who have to pay the fine include Mukesh Ambani, Anil Ambani, his mother Kokilaben, wives, children and other relatives.
In 2002, SEBI received a complaint about irregularities in issue of shares, following which SEBI started investigating the case. In January 2000, Reliance Industries issued equity shares of Rs 12 crore for 38 units. This allotment was made on the basis of the warrant received in lieu of NCD issued in the year 1994.
The regulator found that 6.83 per cent of these shares were bought by the promoters of Reliance Industries in the year 2000. This was a violation of the acquisition cap of 5 per cent.
As per Sebi regulations, if a promoter acquires more than 5 per cent voting rights in a financial year, they will have to make a public announcement. In the same case, SEBI blamed the promoters of Reliance Industries for violating the rules and fined them.