(BS)
The Securities and Exchange Board of India (Sebi) on Friday directed Mukesh Ambani’s Reliance Industries Ltd (RIL) to disgorge Rs 447.27 crore, made “unlawfully” by dealing in shares of its erstwhile subsidiary, Reliance Petroleum (RPL). The markets regulator also barred RIL from the futures and options (F&O) segment for a year and asked it to settle all existing open positions. It will also have to pay 12 per cent interest on the disgorgement amount since November 29, 2007.
“Taking into consideration the magnitude of the fraud across the markets, the quantum of unlawful gains made by the Noticee No. 1 (RIL) and the role of the agents in facilitating the fraudulent design, I am inclined to pass certain directions against the noticees in order to protect the interest of the investors and reinstill their faith in the regulatory system,” said G Mahalingam, wholetime member, Sebi, in a 54-page order. The company has been charged under Sebi’s Prohibition of Fraudulent and Unfair Trade Practices (FUTP) Regulations.
Reliance responded by saying Sebi appeared to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions. “We are in the process of consulting our legal advisors. We propose to prefer an appeal and challenge the order in the Securities Appellate Tribunal,” it said.
