Sebi slaps Rs 13-crore penalty on Reliance Industries
.jpg)
The Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 13 crore on Reliance Industries Ltd (RIL) for violation of the listing agreement with regard to disclosure of a financial metric. Sebi on Friday charged the company with violating section 41 of the listing agreement and section 21 of the Securities Contract Regulations Act (SCRA).
The violations date back to 2007-09, when RIL had issued 120 million warrants to entities in the promoter group on a preferential basis.
According to the regulator, on the conversion of these warrants into shares, there was an increase in the paid-up share capital of RIL.
In a statement, RIL said the issue was not of non-disclosure. It said, “The issue relates to the method of calculation of diluted EPS under the Accounting Standards. The issue is not of non-disclosure. It can be observed from the results published by the company of all the quarters in question that both basic and diluted EPS have been disclosed. The company in its arguments and written submission has brought out all the relevant clauses of the Accounting Standards to substantiate why basic EPS and diluted EPS were the same in all the quarters. We are now studying the order as to the interpretation Sebi has taken and would take appropriate action based on legal advice.”
The market watchdog has said the company did not disclose the diluted earnings per share (EPS) in financial results, despite the existence of share warrants—- a violation of listing agreement.
During a personal hearing in March this year, RIL had argued they did not disclose, diluted EPS separately as the warrants were exercised at the fair value and there was no dilution of earnings.
Sebi said adequate disclosure was a must. The market regulator, in the order, stated that disclosure of EPS is “one of the important tools that investors use while making a decision regarding their investment in particular scrip”. By not making adequate disclosure, the company to give its investors a fair chance to make an informed decision, it stated.
Other Latest News
.webp)
At least nine people were burnt alive and 15 injured when a moving bus caught fire near Tauru in Haryana's Nuh district in the early hours of Saturday, police said.
The incident occurred around 2 am on the Kundli-Manesar-Palwal (KMP) Expressway. The bus was carrying around 60 people, all residents of Punjab's Hoshiarpur and Ludhiana, who were returning from pilgrim towns of Mathura and Vrindavan. All of them are relatives, police said.
.webp)
Softbank-backed OYO is set to refile its much-awaited IPO as the global travel tech player is close to finalising its refinancing plans to raise up to $450 million via sale of dollar bonds, sources said.
JP Morgan is the likely lead banker for the refinancing through the sale of dollar bonds at an estimated interest rate of 9 to 10 per cent per annum, a source said.
.webp)
The national capital on Saturday morning recorded a minimum temperature of 27.1 degrees Celsius, 0.6 notch above the season's average, according to the India Meteorological Department (IMD).
On Friday, Delhi witnessed 47.4 degrees Celsius in Najafgarh, making it the hottest place in the country.
.webp)
Shareholders in Nestle India have rejected a company proposal to increase royalty payments to its Swiss parent Nestle, the company said late on Friday.
The motion called for the royalty paid to its parent to climb to 5.25 per cent of net sales, net of taxes, compared to the current level of 4.5 per cent. The increase was proposed at a rate of 0.15 per cent per annum.
.webp)
Shares of Zee Entertainment soared up to 5.2 per cent at Rs 141.65 per share on the BSE in Saturday’s intraday trade. The hike in the stock prices came after the company delivered a turnaround in quarterly growth for the January-March quarter of fiscal year 2023-24 (Q4FY24).
In the March quarter, the company reported a consolidated net profit of Rs 13.35 crore, marking a reversal from a consolidated net loss of Rs 196.03 crore in the same period of the previous fiscal year.
.webp)
.webp)
.webp)
.webp)
.webp)
