The Securities Exchange Board of India has penalized Reliance Industries Limited. RIL didn’t respond to queries but has challenged an earlier Sebi order in the matter in the Supreme Court.
The regulator imposed a penalty of Rs 25 crore on RIL and Rs 15 crore on Ambani. It also fined Navi Mumbai SEZ Rs 20 crore. It asked Mumbai SEZ to pay Rs 10 crore. RIL absorbed RPL in 2009.
Subsequently, RIL’s sale of its stake lowered the settlement price of RPL in the futures and options (F&O) segment, allowing profits to be made.
“It was observed that RIL had entered into a well-planned operation with its agents to corner the open interest in the RPL futures and to earn undue profits from the sale of RPL shares in both cash and futures segments and to dump large number of RPL share market in the cash segment during the last 10 minutes of trading on the settlement day resulting in a fall in the settlement price,” Sebi adjudicating officer BJ Dilip said in the 95-page order on Friday. The “scheme of manipulation was deceptive an ..
Sebi investigated trading of RPL shares. They checked whether there was any violation of securities laws. RIL board passed the resolution. It approved the operating plan for FY08 and resource requirements for the next two years of about Rs 87,000 crore. Thereafter, RIL decided to sell about 5% of its shareholding in RPL in November 2007. Subsequently, RIL appointed 12 agents to undertake tran ..
Final Words
SEBI directed RIL to disgorge over Rs 447 crore along with interest in the RPL case. The Securities Appellate Tribunal (SAT) had upheld the order in November 2020.
