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Business Upturn
03-05-2025
- Business
- Business Upturn
Reliance Industries loses appeal in Jio-Facebook disclosure case; to consider legal options
By Aditya Bhagchandani Published on May 3, 2025, 14:57 IST Reliance Industries Limited (RIL) has announced that the Securities Appellate Tribunal (SAT) has dismissed its appeal against the Securities and Exchange Board of India's (SEBI) 2022 order, which imposed a penalty of ₹30 lakh for a disclosure lapse concerning the Jio-Facebook deal in 2020. The penalty was imposed for an alleged violation of Principle 4 under Schedule A of the SEBI PIT Regulations (Prohibition of Insider Trading), linked with delayed disclosure of the Jio-Facebook transaction under Regulation 30 of the SEBI LODR Regulations. In a statement to the exchanges on May 3, 2025, RIL confirmed that the SAT order was made available on May 2 at around 5:00 PM IST. The company said it would evaluate the order and decide on the next steps in consultation with legal counsel. Reliance reiterated its position that it had complied with both the letter and spirit of SEBI's disclosure regulations. The case concerns disclosures made during the landmark Jio Platforms-Facebook partnership in 2020. The company has informed BSE, NSE, the Luxembourg Stock Exchange, and the Singapore Exchange about the development. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Time of India
03-05-2025
- Business
- Time of India
SAT upholds Sebi order penalising Reliance Industries, 2 executives
Mumbai: The Securities Appellate Tribunal has upheld a Securities and Exchange Board of India order imposing ₹30-lakh penalty on Reliance Industries and two of its compliance officers, Savithri Parekh and K Sethuraman, for not promptly disclosing the stake sale in its subsidiary company, Jio Platforms, to Facebook in 2020. In 2022, in its order, Sebi had alleged that during its investigation it had gathered that there was a lot of news flow around Facebook investing in Jio in March and April 2020, prior to the corporate announcement made on April 22, 2020, RIL made three separate announcements in April and May about Facebook investing ₹43,574 crore in Jio Platforms for a 9.99% stake, Silver Lake investing ₹5,655 crore for 1.15 % stake and Vista Equity investing ₹11,367 crore in a subsidiary company for 2.32% stake. "It was observed that the first news about impending Jio-Facebook deal was published in the Financial Times (FT), London, on March 24, 2020 post market hours and, thereafter, the said news report of FT was widely circulated in Indian media on the same day and the next day," Sebi had said in its order. The regulator said the news articles stated that Facebook is seeking to buy a multibillion-dollar stake in Reliance Jio, Facebook was close to signing a preliminary deal for a 10% share in Jio, a deal with Facebook was due to be announced in March-end, coinciding with the end of the Indian financial year. Post publication of said news articles, the scrip price of the company went up by almost 15% on March 25, 2020, Sebi had said. The regulator had also said there were many other news articles that appeared in the media relating to Jio-Facebook deal prior to its corporate announcement by the company. "... in our view, it was the responsibility of the RIL to have made prompt disclosure to make information generally available, when it was disclosed selectively in certain media by unknown sources, which had ostensibly reached to only selected universe of subscribers of such international print media and not to all investors / potential investors. Moreover, in such times of uncertainty, in the interest of protecting its shareholders, it was the duty caste upon the company to make due disclosure to clear the dust," said the SAT bench presided over by Justice PS Dinesh Kumar.
Time of India
02-05-2025
- Business
- Time of India
SAT upholds Sebi order penalising RIL, 2 execs
Mumbai: The Securities Appellate Tribunal has upheld a Securities and Exchange Board of India order imposing ₹30-lakh penalty on Reliance Industries and two of its compliance officers , Savithri Parekh and K Sethuraman, for not promptly disclosing the stake sale in its subsidiary company, Jio Platforms , to Facebook in 2020. #Pahalgam Terrorist Attack Pakistan reopens Attari-Wagah border to allow stranded citizens in India to return Key Jammu & Kashmir reservoirs' flushing to begin soon Air India sees Pakistan airspace ban costing it $600 mn over 12 months In 2022, in its order, Sebi had alleged that during its investigation it had gathered that there was a lot of news flow around Facebook investing in Jio in March and April 2020, prior to the corporate announcement made on April 22, 2020. In 2020, RIL made three separate announcements in April and May about Facebook investing ₹43,574 crore in Jio Platforms for a 9.99% stake, Silver Lake investing ₹5,655 crore for 1.15 % stake and Vista Equity investing ₹11,367 crore in a subsidiary company for 2.32% stake. "It was observed that the first news about impending Jio-Facebook deal was published in the Financial Times (FT), London, on March 24, 2020 post market hours and, thereafter, the said news report of FT was widely circulated in Indian media on the same day and the next day," Sebi had said in its order. 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Victoria Principal Is Almost 75, See Her Now Reportingly Undo The regulator said the news articles stated that Facebook is seeking to buy a multibillion-dollar stake in Reliance Jio, Facebook was close to signing a preliminary deal for a 10% share in Jio, a deal with Facebook was due to be announced in March-end, coinciding with the end of the Indian financial year. Post publication of said news articles, the scrip price of the company went up by almost 15% on March 25, 2020, Sebi had said. The regulator had also said there were many other news articles that appeared in the media relating to Jio-Facebook deal prior to its corporate announcement by the company. Live Events "... in our view, it was the responsibility of the RIL to have made prompt disclosure to make information generally available, when it was disclosed selectively in certain media by unknown sources, which had ostensibly reached to only selected universe of subscribers of such international print media and not to all investors / potential investors. Moreover, in such times of uncertainty, in the interest of protecting its shareholders, it was the duty caste upon the company to make due disclosure to clear the dust," said the SAT bench presided over by Justice PS Dinesh Kumar.
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Business Standard
02-05-2025
- Business
- Business Standard
SAT dismisses Reliance Industries plea in Jio-Facebook deal disclosure case
The Securities Appellate Tribunal (SAT) on Friday dismissed Reliance Industries' (RIL) appeal against a Securities and Exchange Board of India (Sebi) order imposing a ₹30 lakh penalty for violating Prohibition of Insider Trading (PIT) Regulations. In its June 2022 adjudicating order, Sebi found RIL in breach of PIT Regulations for failing to disclose details of a potential investment deal with Facebook in Jio Platforms promptly. 'We find the appellants in violation of Principle 4, Schedule A of the PIT Regulations and uphold the SEBI order,' said the SAT bench, presided over by Justice PS Dinesh Kumar. The case relates to a confidentiality and non-disclosure agreement signed between RIL and Facebook in September 2019, followed by a non-binding term sheet on March 4, 2020, for Facebook's investment in Jio Platforms. Legal experts said that while the monetary penalty in this case was just ₹30 lakh, the SAT judgement could set a precedent for companies on handling news leaks and disclosures. On March 24, 2020, the Financial Times reported that Facebook was nearing a deal to acquire a 10 per cent stake in Jio. Domestic media also followed up the news report, triggering a 15 per cent surge in RIL's share price. RIL formally disclosed the Jio-Facebook deal to stock exchanges only on April 22, 2020, after executing a definitive transaction document, prompting another 10 per cent jump in its stock price. RIL argued it was not obligated to confirm or deny market rumours or disclose the deal under Principle 4, as the regulation applies only to 'selective leaks.' Sebi countered that confidentiality agreements do not override PIT Regulations and that undisclosed price-sensitive information (UPSI) must be disseminated promptly if leaked. The SAT ruled that RIL was duty-bound to disclose the information once it appeared in credible media reports. 'It was RIL's responsibility to make prompt disclosure to ensure information was generally available, especially when selectively reported by international media to a limited audience,' the order stated. The tribunal emphasised that in cases of uncertainty, companies must disclose information to protect shareholders. It also noted the credibility of the Financial Times report, given the involvement of two global conglomerates and the need for high-level approvals in a cross-border deal. 'RIL's argument that only a binding agreement triggers disclosure lacks merit and undermines the spirit of PIT Regulations,' the order added.
