The Securities Exchange Board of India on Friday imposed a fine of Rs 40 crore combined together on Reliance Industries on its chairman, Mukesh Ambani.
Classification of fine
SEBI imposed the fine of Rs 25 crore on Reliance Industries and Rs 15 crore on Mukesh Ambani.
Two more entities, Navi Mumbai SEZ Pvt Ltd and Mumbai SEZ Ltd have been fined Rs 20 crore and Rs 10 crore, respectively.
Reason
SEBI claims that they had manipulated shares of Reliance Petroleum Ltd (RPL) in November 2007.
Issues in 2007
The issue relates to manipulation during the sale and purchase of Reliance Petroluem Limited shares in November 2007.
This followed RIL’s decision in March 2007 to sell 4.1 per cent stake in RPL, a listed subsidiary that was later merged with RIL in 2009.
The Navi Mumbai SEZ Pvt. Ltd. and Mumbai SEZ Ltd. have allegedly aided and abetted RIL by providing funds to one of the agents appointed by RIL.
After years of investigation, SEBI observed in 2017 that Reliance, along with 12 unlisted trading houses, carried out unlawful transactions in the shares of Reliance Petroleum.
And Now, finally on Friday SEBI imposed the penalty.
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