Securities and Exchange Board of India (Sebi) today banned Reliance Industries and 12 others from equity derivatives trading for one year and directed the Mukesh Ambani-led firm to disgorge nearly Rs 1,000 crore for alleged fraudulent trading in a 10-year-old case. The case related to alleged fraudulent trading in the F&O space in the securities of RIL’s erstwhile listed subsidiary Reliance Petroleum. A company spokesperson said it will challenge the order.
- Under Sections 11, 11B of the SEBI Act, 1992, Section 12A of the Securities Contracts (Regulation) Act, 1956 read with Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003
- Reliance Industries has been asked to disgorge Rs 447 crore, along with an annual interest of 12 per cent since November 29, 2007
- The case related to alleged fraudulent trading in the F&O space in the securities of RILs erstwhile listed subsidiary Reliance Petroleum.
- The share-sale caused the stock price of RIL to drop in the cash & derivatives segment and benefited RIL to the tune of Rs 513 crore.
- The Sebi analysis also showed the front entities that dealt in the RPL stock had never traded in the F&O segment between April 2007 and November 2007.
- RIL had moved the Securities Appellate Tribunal to settle this case through the so-called consent route. However, the plea had been dismissed by the tribunal in July 2014.
- The Reliance Industries group had earlier sought to settle the case, but SEBI had refused.
- Reliance Petroleum has been merged with the listed parent firm.
- Sebi completed investigation in the matter in 2015 and subsequently issued a showcause notice to RIL.
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