Sebi takes up RIL stake hike case

Mar 09, 2011 |

NYTS

Tags:

RIL
Sebi

March 8: The Securities and Exchange Board of India (Sebi) has started the adjudication proceedings against Reliance Industries Ltd (RIL) in a takeover norms violations case more than a decade ago when the company had issued non-convertible deb-entures with warrants attac-hed to promoters, CNBC-TV18 reported on Tuesday.

The regulator has served RIL a show-cause notice on “why action should not be taken against the company” in the matter of conversion of the warrants, which increased the promoters’ stake in the company from 22.2 per cent to 38.8 per cent in March 2000.

According to the report, the company has 14 days to respond to the showcause notice. RIL, however did not comment on the report. It also has the option to go for consent proceeding, under which it can settle the charges by paying a fine, without admission or denial of any wrongdoing.

In 1994, the company had raised Rs 3 billion through 60 million non-convertible debentures priced at Rs 50 each. The debentures were issued to 38 entities and had 120 million warrants, convertible into one share each, attached to them. In 2002, RIL informed the BSE that the 38 entities were persons acting in concert with the promoter group. Sebi had in December asked the government to consider action against RIL.

Post new comment

<form action="/comment/reply/61922" accept-charset="UTF-8" method="post" id="comment-form"> <div><div class="form-item" id="edit-name-wrapper"> <label for="edit-name">Your name: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="60" name="name" id="edit-name" size="30" value="Reader" class="form-text required" /> </div> <div class="form-item" id="edit-mail-wrapper"> <label for="edit-mail">E-Mail Address: <span class="form-required" title="This field is required.">*</span></label> <input type="text" maxlength="64" name="mail" id="edit-mail" size="30" value="" class="form-text required" /> <div class="description">The content of this field is kept private and will not be shown publicly.</div> </div> <div class="form-item" id="edit-comment-wrapper"> <label for="edit-comment">Comment: <span class="form-required" title="This field is required.">*</span></label> <textarea cols="60" rows="15" name="comment" id="edit-comment" class="form-textarea resizable required"></textarea> </div> <fieldset class=" collapsible collapsed"><legend>Input format</legend><div class="form-item" id="edit-format-1-wrapper"> <label class="option" for="edit-format-1"><input type="radio" id="edit-format-1" name="format" value="1" class="form-radio" /> Filtered HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd></li><li>Lines and paragraphs break automatically.</li></ul></div> </div> <div class="form-item" id="edit-format-2-wrapper"> <label class="option" for="edit-format-2"><input type="radio" id="edit-format-2" name="format" value="2" checked="checked" class="form-radio" /> Full HTML</label> <div class="description"><ul class="tips"><li>Web page addresses and e-mail addresses turn into links automatically.</li><li>Lines and paragraphs break automatically.</li></ul></div> </div> </fieldset> <input type="hidden" name="form_build_id" id="form-e47a2530e7d19d4b47b27ee73dfab044" value="form-e47a2530e7d19d4b47b27ee73dfab044" /> <input type="hidden" name="form_id" id="edit-comment-form" value="comment_form" /> <fieldset class="captcha"><legend>CAPTCHA</legend><div class="description">This question is for testing whether you are a human visitor and to prevent automated spam submissions.</div><input type="hidden" name="captcha_sid" id="edit-captcha-sid" value="81363027" /> <input type="hidden" name="captcha_response" id="edit-captcha-response" value="NLPCaptcha" /> <div class="form-item"> <div id="nlpcaptcha_ajax_api_container"><script type="text/javascript"> var NLPOptions = {key:'c4823cf77a2526b0fba265e2af75c1b5'};</script><script type="text/javascript" src="http://call.nlpcaptcha.in/js/captcha.js" ></script></div> </div> </fieldset> <span class="btn-left"><span class="btn-right"><input type="submit" name="op" id="edit-submit" value="Save" class="form-submit" /></span></span> </div></form>