SEBI slams Reliance for not disclosing 2020 Facebook deal immediately

Mumbai: Securities and Exchange Board of India (SEBI) on Monday slapped fines. Reliance Businesses and its two compliant executives for violating fair advertising standards during a રોકાણ 5.7 billion investment in Facebook’s digital unit in 2020.
In April 2020, Meta’s Facebook invested 5.7 billion in Reliance’s Jio platforms, with the aim of allowing WhatsApp to provide payment services to millions of small businesses. The deal helped billionaire Mukesh Ambani’s Reliance reduce its heavy debt burden.
SEBI said that Reliance did not announce the deal even after releasing price-sensitive details about its imminent investment in March 2020, which led to a rise in its shares.
Reliance did not immediately respond to requests for comment outside of regular business hours.
“When bits of (unpublished price-sensitive information) that were then selectively available became available, the company relinquished its responsibility to verify and clean up unverified information floating around,” SEBI said in its order late Monday night.
SEBI said it was “obligated” to Reliance to provide “appropriate clarification in its own way” once it learned of the “selective availability” of the information.
The regulator has fined Reliance and two compliance officers Rs. A fine of Rs 30 lakh ($ 38,522) was imposed. ($ 1 = Rs.77.8780)

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