RIL gets clean chit in 7-year insider case
Sebi was directed to hear the matter fresh and dispose of the case within three months.
Mumbai: The Securities and Exchange Board of India (Sebi) on Wednesday disposed of its adjudication proceedings against Mukesh Ambani led Reliance Petroinvestments, now merged with Reliance Industries Ltd (RIL) in a seven- year-old alleged insider trading charge due to lack of enough evidence.
The case pertains to dealing in the shares of Indian Petrochemical Corporation Ltd (IPCL) ahead of the announcement of interim dividend and amalgamation of the company with RIL.
In 2007, the capital market regulator alleged that Reliance Petroinvestments benefited by dealing in the scrips of IPCL ahead of key announcements, which were considered as unpublished price sensitive information. The company was asked to pay a penalty of Rs 11 crore for alleged violation of insider trading norms.
However, the order was later set aside by Securities Appellate Tribunal (SAT) on grounds that the order was “passed merely on the basis of presumption without considering the arguments advanced on behalf of the Appellant to rebut the presumption”.
Sebi was directed to hear the matter fresh and dispose of the case within three months. “In absence of any evidence by the investigating authority to establish the access of unpublished price sensitive information (UPSI) to the Noticee (RIL), it can be concluded that the Noticee did not have access to UPSI while trading in the scrip of IPCL. Hence, it can be concluded that the Noticee and RIL are not ‘insider’ as alleged in the show cause notice SCN,” Sebi said in its order.