The Securities Exchange and Board of India (SEBI) has imposed a 25 crore rupees ($3.36 million) penalty on the Ambani family and related entities for offences related to the increase of their shareholding in Reliance Industries back in 2000, according to a Bloomberg Quint report
At the time, the creeping acquisition limit was 5 percent per annum for acquirers already holding a stake of between 15 and 55 percent. Any acquisition exceeding 5 percent was required to be accompanied by an open offer. The family members increased their holding by 6.83 percent without such an offer. The fine must be paid within 45 days.
Fifteen members of the Ambani family including Chairman Mukesh Ambani, Anil Ambani, Nita Ambani and Tina Ambani have been penalised, according to the SEBI order.
The Ambani family’s Reliance Industries includes a retail arm that has partnered with fashion brands from Burberry and Bottega Veneta, to Marks and Spencer and Diesel, for their Indian retail operations.