Reliance Industries and chairman fined over share trades

  • Reuters
  • Stock Market News
Reliance Industries and chairman fined over share trades
Credit: © Reuters.

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By Abhirup Roy

MUMBAI, Jan 1 (Reuters) - India's markets watchdog fined Reliance Industries RELI.NS 250 million rupees ($3.42 million) and its chairman Mukesh Ambani 150 million rupees on Friday for what it said were fraudulent trades while selling a stake in a subsidiary in 2007.

The Securities and Exchange Board of India (SEBI) alleged that the oil-to-telecoms conglomerate took derivative short positions in shares of separately listed Reliance Petroleum in 2007 through third parties before it sold a 5% stake in the business.

Reliance did not immediately respond to requests for company comment and comment from Chairman Ambani.

The latest ruling follows a 2017 order https://www.reuters.com/article/us-reliance-sebi-idUSKBN16V2I0 for Reliance Industries to surrender about 4.5 billion rupees plus 12% annual interest for what the regulator said were unlawful gains from that deal. It also barred Reliance and some third parties from trading in derivatives for one year.

At the time, Reliance Industries said the trades examined by SEBI were "genuine and bona fide transactions" and that SEBI had "misconstrued the true nature of the transactions and imposed unjustifiable sanctions".

The group is awaiting a Supreme Court appeal hearing against the 2017 ruling.

"By this penalty, SEBI is showing its teeth," Shriram Subramanian, a corporate governance expert and founder of proxy advisory firm InGovern, said of Friday's ruling.

"The said scheme of manipulation was deceptive and against the interest of the securities markets," SEBI said in Friday's 95-page order https://www.sebi.gov.in/enforcement/orders/jan-2021/adjudication-order-in-respect-4-entities-in-the-matter-of-reliance-petroleum-limited_48637.html, adding that Ambani was responsible for the company's activities. ($1 = 73.1200 Indian rupees)

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  • Cool Trader @Cool Trader
    This is very common practice by management. Shares starts reacting before news is out & small investors are always trapped in plot. There must be thousands of incidence of insider trading. One who is caught is theif else are saints
    Like 0
  • Balasaheb Ghuge @Balasaheb Ghuge
    why Congress not taken action against him from 2007 to 2013
    Like 1
  • Balasaheb Ghuge @Balasaheb Ghuge
    why Congress not taken action aganist him from 2007 To 2013 if he is support BJP.
    Like 0
  • Ravish Mahajan @Ravish Mahajan
    what a joke.He is fined 15cr, and he would have earned 1000X more than that doing that fraud.SEBI is useless. Govt. just want to show that we dont support Ambani and we are capable of taking action against them by fining peanuts.But what about those investors who got trapped.
    Like 12
  • Ravish Mahajan @Ravish Mahajan
    what a joke 😂😂He is fined 15cr, and he would have earned 1000X more than that doing that fraud.SEBI is useless. Govt. just want to show that we dont support Ambani and we are capable of taking action against them by fining peanuts.But what about those investors who got trapped.
    Like 3
  • Ravish Mahajan @Ravish Mahajan
    what a joke 😂😂He is fined 15cr, and he would have earned 1000X more than that doing that fraud.SEBI is useless. Govt. just want to show that we dont support Ambani and we are capable of taking action against them by fining peanuts.But what about those investors who got trapped.
    Like 2
  • Tushar Rane @Tushar Rane
    took 14 years ...joke aahe
    Like 2
  • Chenthil Kumar @Chenthil Kumar
    Hope Supreme uphold the judgement and infuse confidence of retailers in our systems
    Like 1
  • Chenthil Kumar @Chenthil Kumar
    Hope Supreme uphold the judgement and infuse confidence of retailers in our systems.
    Like 1
  • Palvinder Singh @Palvinder Singh
    lala log lala hi rahenge...
    Like 0
  • Shankar Char @Shankar Char
    aadmi kitna bhi gora ho, gote toh kale hi hein
    Like 1
  • Kartik Das @Kartik Das
    Since Reliance Industries not maintaing a Quality management so far...
    Like 0
  • maheswara reddy @maheswara reddy
    it's done at 2007, they fines now, what a Joke...how this ********ing SEBI operates....
    Like 5
  • Nehal Siddiqui @Nehal Siddiqui
    There is vast difference between Ratan Tata & Mr. Ambani. Mr. Ratan Tata is an honest man where is Mukesh Ambani is not at all. There should be heavy penality on wrong doings. Reliance has wrongfully drains gas & oil from same ONGC reservior which international court has also opined that Reliance has done wrong but our has not taken any action till today.
    Like 6
  • Rahul Singh Religare @Rahul Singh Religare
    The amount of fine imposed is a joke. This is a very grave crime, he should have been punised more strictly. It is a very nominal fine foe soneone who spends 5 crore for a cricket match outing
    Like 1
  • Sridhar N Rao @Sridhar N Rao
    Reliance will dip and so will Nifty. A good chance to buy Reliance for long term.
    Like 4
  • Sri venkata reddy Goluguri @Sri venkata reddy Goluguri
    equity market might see small bloodbath when it opens on Monday
    Like 1
    • dharamviir sheokand @dharamviir sheokand
      they will ruin agriculture sector  a person cant give fair value to his shares how can he give msp to farmers without any legal guranntee support farmers otherwise  jai kisan jai jawan
      Like 3
    • Vishal Talreja @Vishal Talreja
      this is happening on all the stocks recently invested by euro pacific first we seen upl now reliance ind
      Like 0
    • rajendran canvas @rajendran canvas
      SEBI has become a useless organization
      Like 0
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