SEBI impose penalty on Reliance Industries and Mukesh Ambani for foul play on share transfer in 2007. The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 40 crore on Mukesh Ambani and his company Reliance Industries. The SEBI regulates the stock market in India. SEBI has taken this action for Foul play in November 2007 for the distribution of Reliance Petroleum Limited (RPL) shares. They allege that RIL did not follow the standard guideline for the distribution of shares.
SEBI has imposed a fine of Rs 15 crore on Mukesh Ambani and 25 crore on his company Reliance Industries. Apart from this his company Navi Mumbai SEZ Pvt. Ltd. fined for 20 crore and his other company Mumbai SEZ Ltd has fined for Rs 10 Crore. Authorities ask Reliance industries and respective companies to deposit the fine amount soon.
Mukesh Ambani and his company Reliance Industries were involved in this foul play
Let me tell you that this foul played in sale and purchase of shares between reliance Petroleum Ltd and Reliance industries in Nov 2007. In March 2007 Reliance Industries has decided to sell its 4.1 per cent stake Reliance Petroleum Ltd. But while transferring shared SEBI norms were violated and foul played by the promoter and company. This listed subsidiary was later merged with RIL in 2009.
Also Read: Why petrol and diesel price increased by the oil companies in India
A 95-page order in this case issued with strong words on company and promoter. The SEBI impose penalty on Reliance Industries and Mukesh Ambani in this case. The investigating office from SEBI, BJ Dilip said that any manipulation in the shares quantity and price always hurt the confidence of investors. They are the most affected entity when companies or individual manipulation market and shares value.
SEBI issued an order with strong comments on Mukesh Ambani and Reliance Industries
BJ Dilip further said that the common investors were not aware that the RIL is behind this deal. The fraudulent trading affected the prices of RPL’s securities and investors lose the money. It has also heart the investors segment and share market. He said that such practice should not be allowed and that the reason why SEBI impose penalty on Reliance Industries and Mukesh Ambani.
Also Read: Facebook invested 43,574 crore in Reliance Jio for minority stake
No response received from Mukesh Ambani and Reliance Industries after this order. We are expecting them to issue an official statement after reading the full order today. I think their legal team will validate the SEBI order and then issue a statement on this case.
Reliance industries are known for manipulate rules and regulation for business: SEBI impose penalty on Reliance
This is obvious by the Reliance Industries to get involve in such wrong practices. Historically they manipulate things to get into the business done. They always follow the back route and manipulate system and people to get their work done. The most of the RIL companies has such allegation from competition.
