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.
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 Rs 25 crore and Rs 15 crore have been imposed on Reliance Industries Ltd (RIL) and Ambani, respectively. Furthermore, Navi Mumbai SEZ Pvt Ltd has been ordered to pay a fine of Rs 20 crore and Mumbai SEZ Ltd has been ordered to pay Rs 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 the 4.1% stake in RPL, a a publicly traded subsidiary that 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 the present case, general investors were unaware that the entity behind the aforementioned F&O segment transactions was RIL. The execution of the… fraudulent operations affected the price of RPL’s securities both in cash and in the F&O segments and harmed the interests of other investors, ”it said in the order.
While noting that the execution of manipulative operations affects the price discovery system itself, the adjudicating official 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 had 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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