The order issued by the capital market regulator said that RIL’s promoters and persons acting in concert failed to disclose the acquisition of more than 5 per cent stake in the company back in 2000, which under Sebi rules would have immediately triggered an open offer to existing public shareholders.
Allegations were raised that RIL’s promoters acquired 6.83 per cent stake in the company between March 1999 to March 2000 through conversion of 3 crore warrants issued to them back in 1994.
Since the promoters and PACs have not made any public announcement for acquiring shares, it is alleged that they have violated the provisions of regulation 11(1) of Takeover Regulations, the SEBI order said.
“I note that no quantifiable figures or data are available on record to assess the disproportionate gain or unfair advantage and amount of loss caused to an investor or group of investors as a result of the default committed by the noticee. However, the fact remains that the noticees by their failure to make public announcement, deprived the shareholders of their statutory rights to exit from the company,” the order said.
Shares of Reliance Industries ended 0.9 per cent higher at Rs 2,001.6 on the National Stock Exchange.
