SAT directs SEBI to pass an order on RIL-N18 deal before Nov-end

MUMBAI: The Securities Appellate Tribunal (SAT) has asked the Securities and Exchange Board of India (SEBI) to pass an order by November-end in the Reliance Industries Ltd (RIL)-Network18 deal.

In May 2014, Mukesh Ambani’s RIL had taken control of Network18 Media & Investments (NW18) and TV18 Broadcast (TV18) through its arm Independent Media Trust (IMT).

The order was passed following an appeal filed by Victor Fernandes and Sangeeta Fernandes seeking further direction from the tribunal. It was alleged that RIL had failed to disclose that it had acquired indirect control over NW18 and TV18 through IMT.

It is pertinent to note that the tribunal had directed SEBI in June 2018 to re-examine whether there have been violations of listing agreement with respect to RIL’s acquisition of Network18 and TV18. SAT had also asked the regulator to check whether RIL acquired indirect control of the two companies through IMT.

The appeal was filed before the SAT after SEBI failed to take a decision even after more than one year of the order being passed.

As a result, the SAT directed SEBI to ensure that an order is passed pursuant to the earlier order of this tribunal dated 22nd June 2018, on or before 30th November.

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