The Supreme Court has rejected an appeal filed by Reliance Industries Limited (RIL) and two of its officials challenging a Securities Appellate Tribunal (SAT) order that upheld a Securities and Exchange Board of India (SEBI) penalty for failing to promptly clarify market reports on the Jio-Facebook stake sale. With this, the court effectively endorsed SEBI’s finding that RIL and its compliance officers did not disclose unpublished price-sensitive information in time, as required under insider trading and disclosure regulations.
SEBI had imposed a total penalty of Rs 3 million in June 2022 on RIL and its compliance officers for not issuing timely confirmation or denial after media reports in March-April 2020 speculated about Facebook’s investment in Jio Platforms. SAT upheld this decision in May 2025.
During the hearing, RIL argued that it had complied with all regulations, made no unlawful gains, and was not obligated to respond to market rumors. The Supreme Court disagreed, noting that SAT’s conclusions required no interference.
SEBI had earlier held that once the company became aware that price-sensitive information was selectively circulating, it was obliged to issue a clarification. It found that RIL and its officials did not meet the fair disclosure requirements under the PIT and LODR rules, which mandate prompt dissemination of any UPSI that becomes selectively available.
By dismissing RIL’s appeal, the Supreme Court has confirmed their liability for the delay in addressing speculation about the landmark Jio-Facebook deal.
