Mukesh Ambani gets big relief from SAT, SEBI order against Rs 16.39 trillion…

Mukesh Ambani is the richest man in the country and he is the chairperson of Reliance Industries which has a market cap of more than Rs 16.39 trillion. Mukesh Ambani and his company Reliance Industries along with Navi Mumbai Special Economic Zone and Mumbai SEZ were imposed hefty penalties by market regulator Securities and Exchange Board of India (SEBI). SEBI imposed a penalty of Rs 25 crore on Reliance Industries and Rs 15 crore on its director Mukesh Ambani in January 2021 due to alleged manipulative trades in the shares of Reliance Petroleum Ltd. Now, the order against Mukesh Ambani has been quashed by the Securities Appellate Tribunal (SAT).

Apart from Mukesh Ambani and Reliance Industries, SEBI also imposed a penalty of Rs 20 crore on Navi Mumbai SEZ. However, Reliance Industries and other entities penalised by SEBI immediately challenged the order before SAT.

For those who are unaware, Mukesh Ambani, Reliance Industries and a couple of other entities were penalised due to alleged irregularities in sale and purchase of Reliance Petroleum shares in the cash and futures segments in November 2007. Subsequently, Reliance Industries decided to sell around 5% stake in Reliance Petroleum, a listed subsidiary that was later merged with RIL in 2009.