The Securities Appellate Tribunal on Wednesday set aside a penalty of Rs 13 crore imposed by Sebi on corporate giant Reliance Industries Ltd (RIL) and asked the markets regulator to consider the matter afresh. The fine was imposed by the regulator last year on charges of violation of the Listing Agreement by RIL with regard to disclosure and computation of a key earnings ratio by the company.
The latest direction follows another SAT ruling earlier this month wherein the tribunal had set aside a penalty of Rs 11 crore imposed on RIL group firm Reliance Petroinvestments Ltd and had asked the regulator to pass order within three months after hearing the matter afresh. The latest case, in which Sebi passed its penalty order on August 8, 2014, relates to a probe by the capital markets regulator in an over seven-year old matter involving alleged irregularities in issuance of 12 crore warrants by Mukesh Ambani-led RIL to its promoters entitling its holders to subscribe to equivalent number of equity shares of RIL.
After hearing an appeal filed by RIL against this order, the SAT on Wednesday said one of the grounds on which the appeal is filed is that the impugned order has taken into account all 12 crore shares relatable to the warrants, in computing DEPS (Diluted Earnings Per Share) for six quarters in question.