Fines of ₹ 25 crore and ₹ 15 crore have been imposed on Reliance Industries Ltd (RIL) and Mukesh Ambani, respectively.
Regulator SEBI on Friday imposed sanctions on Reliance Industries Ltd, its president and CEO Mukesh Ambani, as well as two other entities for alleged manipulative trading of the shares of the former Reliance Petroleum Ltd (RPL) in November 2007.
Fines of ₹ 25 crore and ₹ 15 crore have been imposed on Reliance Industries Ltd (RIL) and Mr. Ambani, respectively. Furthermore, Navi Mumbai SEZ Pvt Ltd has been ordered to pay a fine of ₹ 20 crore and Mumbai SEZ Ltd has been ordered to pay ₹ 10 crore.
The case concerns the sale and purchase of RPL shares in the cash and futures segments in November 2007. This followed RIL’s decision in March 2007 to sell a 4.1% stake in RPL, a subsidiary. which is publicly traded and later merged with RIL in 2009.
In a 95-page order, SEBI adjudication officer BJ Dilip said that any manipulation in the volume or price of securities always erodes investor confidence in the market when investors are on the receiving end of the securities. market manipulators.
“In this case, general investors were unaware that the entity behind the above F&O segment transactions was RIL. The execution of the … fraudulent transactions affected the price of the RPL securities both in cash and in the F&O segments and hurt the interests of other investors, “it said in the warrant.
While noting that the execution of manipulative operations affects the price discovery system itself, the Adjudicating Officer said: “I am of the opinion that such manipulative acts should be dealt with severely to deter manipulative activities in the capital markets.” . On March 24, 2017, SEBI ordered RIL and some other entities to return more than Rs 447 million in the RPL case. In November 2020, the Securities Appeal Court (SAT) dismissed the company’s appeal against the order.
At the time, RIL had said it would challenge the court order in the Supreme Court.
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