Reliance Industries Limited (RIL) announces a significant judgment from the Hon’ble Supreme Court regarding the RPL scrip matter. The Supreme Court has ruled that ‘fraud’ under the PFUTP Regulations was not made out against RIL. While acknowledging a violation of disclosure requirements related to position limits, the court set aside the earlier penalties imposed by the Securities Appellate Tribunal (SAT), confirming RIL’s compliance with regulatory orders and underscoring the nuanced outcome of the protracted legal proceedings.
Supreme Court Delivers Verdict on RPL Scrip Matter
Reliance Industries Limited (RIL) has received a pivotal judgment from the Hon’ble Supreme Court concerning a case related to the RPL scrip. This update pertains to disclosures previously made by RIL on 24-03-2017 and 05-11-2020, concerning alleged violations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Background of the Case
The matter originated from an order dated 24-03-2017 by the Whole-time Member of SEBI, which found RIL to have acted fraudulently in dealing with the RPL scrip, leading to alleged violations of the Securities and Exchange Board of India Act and PFUTP Regulations. Directions included a one-year prohibition from dealing in equity derivatives and a disgorgement of Rs. 447.27 crore with interest. RIL’s appeal to the Securities Appellate Tribunal (SAT) was dismissed by a majority order (2:1) on 05-11-2020, directing RIL to pay the disgorged amount within 60 days.
Subsequently, RIL’s appeal to the Hon’ble Supreme Court led to an order dated 17-12-2020. In this order, the Supreme Court directed RIL to deposit Rs. 250 crore into the Investors’ Protection Fund, subject to the final outcome of the appeal, and stayed the recovery of the balance amount, including interest. RIL complied with this order.
Further, an order dated 01-01-2021 from the adjudicating officer of SEBI (AO) held RIL’s actions as manipulative and deceptive transactions, imposing a penalty of Rs. 25 crore, which was deposited by RIL. SAT, by its order dated 04-12-2023, did not interfere with the AO’s order, stating it was covered by its earlier decision. RIL appealed this SAT order in the Hon’ble Supreme Court.
Supreme Court’s Final Judgement
In its judgment dated 29-05-2026, the Hon’ble Supreme Court made the following key pronouncements:
- Holding that ‘fraud’ under the PFUTP Regulations was not made out against RIL in the present matter.
- Finding that SAT, in its majority judgment, committed an egregious error concerning the question of ‘fraud’ under regulations 3 and 4 of the PFUTP Regulations.
- Setting aside the impugned judgment and order passed by the SAT, particularly regarding the finding on ‘fraud’.
- Holding that RIL had only violated the disclosure requirements under the 2001 SEBI Circular concerning position limits. RIL was deemed liable to be penalized as per the 2001 SEBI Circular and 2001 NSE Circular, with the SAT’s observations on the penalty for this violation being concurred with.
This landmark ruling provides significant clarity on the matter and marks a crucial turning point in the legal proceedings for Reliance Industries Limited.
Source: BSE
