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The Securities Exchange Board of India (SEBI) has imposed Rs 40 crores in fine on Reliance Industries Ltd (RIL), Mukesh Ambani, and on its other entities for alleged manipulative trading in the shares of Reliance Petroleum Ltd (RPL) back in 2007.
According to the Press Trust of India (PTI) report, “SEBI has fined Rs 25 crores on Reliance Industries Ltd (RIL), Rs 15 crore on Mukesh Ambani, Rs 20 crore and Rs 10 crore respectively on Navi Mumbai SEZ Pvt Ltd, and Mumbai SEZ Ltd.”
The case pertains to the sale and purchase of Reliance Petroleum Ltd (RPL) in the cash and the futures segment in November 200, this follows to RILs decision to sell 4.1% shares in RPL in March 2002, which later merged with Reliance Industries in 2009.
SEBI Adjudicating Officer, BJ Dilip said, “I find it appropriate to consider the direction like department and the disgorgement that has already been passed against RIL as a relevant factor while deciding the quantum of penalty.”
“In the instant case, the general investors were not aware that the entity behind the above F&O segment transactions was RIL. The execution of the fraudulent trades affected the price of the RPL securities in both cash and F&O segments and harmed the interests of other investors,” he said in the order said.
“I am of the view that such acts of manipulation have to be dealt with sternly to dissuade manipulative activities in the capital markets,” he added.
Adding to the order, Dilip said, “I note that Notice-2, being the Managing Director of RIL, was responsible for the manipulative activities of RIL. I am of the view that listed companies should exhibit the highest standards of professionalism, transparency, and good practices of corporate governance, which inspires the confidence of the investors dealing in the capital markets.”
RIL had earlier said it would challenge SAT’s order in the Supreme Court.