SAT overturns Sebi order against Ambani brothers

The Securities Appellate Tribunal (SAT) on Friday set aside the Securities and Exchange Board of India’s (Sebi’s) April 2021 penalty of ₹25 crore on Mukesh Ambani, Anil Ambani, Reliance Industries Holding, and eight other entities for alleged violation of takeover regulations in a more than two-decade-old case.

- Priyanka Gawande

While SAT observed that the “inexplicable and inordinate" delay on Sebi’s part to impose a penalty is reason alone for setting aside the order, the bench led by Justice Tarun Agarwala held that it found the “appellants have not violated Regulation 11 (1) of SAST (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The imposition of penalty upon the appellants is without any authority of law. Consequently, in view of this, the Sebi order cannot be sustained and therefore quashed, and the appeal is allowed."

The tribunal added that it was informed that the penalty amount was deposited with the regulator. Since the bench set aside the Sebi order, the market regulator has been directed to refund ₹25 crore within four weeks.