On Monday, June 20, the Securities and Exchange Board of India (SEBI) issued a fine to Reliance Industries. It fined two of its officers also for infringing fair disclosure norms during Facebook’s $5.7 billion investment in its digital department in 2020.
The violations occurred during the time period in which Reliance Industries received the investment.
The investment of $5.7 billion in Reliance’s Jio Platforms by Meta’s Facebook in April 2020 was made.
The main intention was to enable WhatsApp to provide payment services to millions of small companies. The Billionaire Mukesh Ambani owned company, Reliance reduced its massive amount of debt thanks to the acquisition.
Even after media reports in March 2020 reported price-sensitive facts about the forthcoming investment, which led to a surge in its shares, the Securities and Exchange Board of India (SEBI) said that Reliance did not disclose the agreement.
Outside of normal business hours, Reliance did not immediately reply to queries for comment on the situation.
“When the pieces of (unreleased price-sensitive information) that had become preferentially available the company abrogated its responsibility to authenticate and come clean on the unconfirmed information that was floating about,” SEBI said in its order late on Monday.
The Securities and Exchange Board of India (SEBI) said that it was “incumbent” on Reliance to give a “necessary explanation on its own” once it became aware of the “selective availability” of the material in question.
A fine of Rs 30 lakh ($38,522) was levied on Reliance. The fine was levied on the two compliance officials by the regulatory body.
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