India’s market regulator on Monday fined Reliance Industries and two of its compliance officers for violating honest disclosure norms throughout Facebook’s $5.7 billion funding in its digital unit in 2020.
In April 2020, Meta’s Facebook invested $5.7 billion in Reliance’s Jio Platforms, aiming to permit WhatsApp to supply funds companies to tens of millions of small companies. The deal helped billionaire Mukesh Ambani’s Reliance slash its heavy debt load.
The Securities and Exchange Board of India (SEBI) mentioned Reliance didn’t disclose the deal even after newspaper experiences in March 2020 printed price-sensitive particulars concerning the imminent funding that led to a spike in its shares.
Reliance didn’t instantly reply to requests for remark outdoors common enterprise hours.
“When the bits of (unpublished price-sensitive information) that then became selectively available the company abdicated its responsibility to verify and come clean on the unverified information that was floating around,” SEBI mentioned in its order late on Monday.
SEBI mentioned it was “incumbent” on Reliance to supply “due clarification on its own” as soon as it knew concerning the “selective availability” of the data.
The regulator imposed a penalty of three million Indian rupees on Reliance and the 2 compliance officers.
($1 = 77.8780 Indian rupees)
(Reporting by Abhirup Roy; Editing by Lisa Shumaker)