A few days ago, Mukesh Ambani has slipped one rung from the title of world’s first richest man to reach number two, Mukesh Ambani now second richest Asian. Just a few days have passed since the case that another bad news has come for Ambani. On Friday, the stock market regulator SEBI imposed strong penalties on SEBI fines Reliance Industries and Mukesh Ambani for the misappropriation of shares. Apart from them, two other entities have also been fined by SEBI.
SEBI has imposed a penalty of Rs 15 crore on Mukesh Ambani, while Rs 25 crore on Mukesh Ambani’s company Reliance Industries. That is, Mukesh Ambani has got a shot of Rs 40 crore. Apart from them, a fine of Rs 20 crore has been imposed on Navi Mumbai SEZ Private Limited and Rs 10 crore on Mumbai Set Limited. SEBI has alleged that RIL had made a mess in the trading of IPL shares.
SEBI has said that it has taken this decision after reviewing all the facts and circumstances of the case during the investigation. Along with this, the rules of SEBI, law, rights and evidence presented in this case were also studied. The action was taken after an investigation into allegations of irregularities in the trading of Reliance Petroleum Limited shares. Two other companies have also been fined.
SEBI has said in the 95-page order that any manipulation in the share price reduces investor confidence in the market, as such manipulation causes loss to investors. According to SEBI, common investors in this case did not know that Reliance Industries was behind this buy and sell of shares. The buy-and-sell was done incorrectly, which impacted Reliance Petroleum shares. This left ordinary investors at a loss.
SEBI had earlier asked Reliance Industries and 12 promoters to deposit Rs 447 crore on 24 March 2017. They were also banned from trading their shares. The company appealed against this in the Securities Appellate Tribunal. But in November 2020, the tribunal rejected the company’s appeal, upholding SEBI’s decision. Reliance Industries had then said that it would challenge the tribunal’s decision in the Supreme Court. In the information given to the stock exchange after the tribunal’s decision, Reliance Industries had said that no rules have been violated in the trading of shares.