NEW DELHI, Dec 02 : The Supreme Court on Tuesday dismissed an appeal by Reliance Industries Limited (RIL) and two of its senior officials challenging the Securities Appellate Tribunal’s (SAT) decision that upheld a ₹30 lakh penalty imposed by market regulator SEBI for failing to promptly clarify media reports regarding the Jio-Facebook deal.
In June 2022, SEBI had fined RIL along with compliance officers Savithri Parekh and K. Sethuraman, concluding that the company did not issue timely confirmations or denials to stock exchanges about media reports on Facebook’s investment in Jio Platforms. SEBI held that the delay violated the Principles of Fair Disclosure under the Prohibition of Insider Trading (PIT) Regulations.
The SAT later upheld SEBI’s findings on May 2, 2025, prompting RIL to approach the Supreme Court.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi refused to interfere with the SAT ruling, noting that the tribunal’s findings required no reconsideration and raised no substantial question of law.
SEBI’s adjudicating officer had noted that media reports about Facebook’s investment surfaced on March 24–25, 2020, but RIL informed stock exchanges only on April 22, 2020—a delay of 28 days. This, the officer said, warranted an appropriate penalty.
The regulator emphasised that once RIL became aware of the selective availability of unpublished price-sensitive information (UPSI), it was obligated to issue due clarification, which it failed to do.
Both SAT and SEBI concluded that RIL and its compliance officers did not comply with the LODR (Listing Obligations and Disclosure Requirements) rules, which mandate prompt dissemination of UPSI and timely confirmation or denial of market-sensitive reports.
The Supreme Court’s decision effectively closes the case, affirming SEBI’s stance on fair disclosure standards for listed companies.