SC Hears SEBI’s Revision Request Against RIL on Oct. 12

The High Council will hear SEBI’s petition in a public court seeking a review of its Aug. 5 ruling ordering the market regulator to share certain documents with Reliance Industries Limited (RIL).



A bench headed by Chief Justice UU Lalit and made up of Judges JK Maheshwari and Hima Kohli said: “Given the facts and circumstances recorded and the comments submitted in the request for review, we consider it appropriate to consider the application for placement of the Immediate Petition in Open Have this request for review in court on October 12, 2022.”

SEBIA has refused to comply with RIL’s request to share the privileged documents on the grounds that the accused company does not have the right to obtain information from the company under the Sebi (settlement proceedings) regulations.

The apex courthad in its opinion rejected this view of the market monitor.

RIL had claimed that documents would exempt it and its promoters from criminal charges brought in a case related to the alleged irregularities in the acquisition of its own shares between 1994 and 2000.

Last week, a bank headed by Judge Sanjiv Khanna had declined to hear RIL’s request to launch contempt proceedings against SEBI for failing to provide certain documents to the company.

On August 5, a bank led by then Chief Justice NV Ramana had said: “SEBI’s approach of not disclosing the documents also raises concerns about transparency and due process. Opacity only promotes prejudice and partiality. Opacity stands at odds with transparency.”

The highest court had said that the market regulator must show honesty and provide the documents requested by RIL, and SEBI has a duty to act fairly when conducting any proceedings or initiating any action against the parties.

RIL has filed for contempt because SEBI failed to share three documents – the two legal opinions of former top judge BN Srikrishna and the report of former ICAI president YH Malegam investigating the irregularities.

The company claimed that SEBI cannot continue to oppose the production of these documents and it had also sent a notice to the regulator stating that if the documents were not received by August 18, it will determine that SEBI does not want to comply with the ruling. of the highest court.

In 2002, Chartered Accountant S. Gurumurthy filed a complaint with SEBI alleging irregularities by RIL, its associated companies and their directors/promoters, including Mukesh Ambanic and his wife, Nita; Anil Ambanic and his wife, Tina; and 98 others.

The complaint raised the issue of two preferential placements of non-convertible bonds in 1994.

SEBI had alleged that RIL, together with Reliance Petroleum, had cumbersomely financed the acquisition of its own shares in violation of Sections 77 and 77A of the Companies Act of 1956.

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