Markets watchdog Sebi has disposed of adjudication proceedings without imposing any penalty on Reliance Industries Ltd in a matter related to alleged incorrect disclosure of diluted earnings per share in its financial results more than 13 years ago.
Sebi decided not to impose any penalty for the alleged violations mainly on two grounds, including that the amendment to the relevant law that made incorrect disclosure of information by a listed company punishable came into force prospectively from March 2019.
Besides, the regulator mentioned its pending appeal before the Supreme Court against a Securities Appellate Tribunal (SAT) order.
The quarterly financial statements submitted by Reliance Industries Ltd to the NSE for six consecutive quarters beginning June 2007 to September 2008 contained the same figures for basic as well as diluted Earnings Per Share (EPS) despite the existence of share warrants, according to Sebi.
RIL had issued 12 crore warrants to its promoters on April 12, 2007, which were convertible within 18 months with an exercise price of Rs 1,402 per warrant entitling its holders to subscribe to an equivalent number of equity shares.
On October 3, 2008, the company's board of directors allotted 12 crores equity shares of Rs 10 each to the allottees, upon exercise of warrants.
(With inputs from PTI)