SEBI imposes fine of Rs 25 crore on Ambani Brothers & Family

The Securities and Exchange Board of India today imposed a Rs 25-crore penalty on the promoters of Reliance Industries, including Muskesh Ambani, For failure to comply with the share takeover disclosures of the regulator.
What is the case?
The case pertains to an increase in the promoter stake of Reliance industries SLtd(RIL) in January 2000, after conversion of come warrants issued as early as 1994. SEBI has alleged to promoter group failed to make an open offer as required under the norms.
What are company warrants?
Company warrants are securities issued by a company, usually during fresh offer of shares. The company issues warrants to raise capital/funds for itself. Issued in the form of certificates, warrants give investors the right to buy shares in the company at a specific price at a future date. Warrant holders can convert their warrant certificates into underlying equity shares of the company within a given time period.

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