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    Sebi fines Reliance Petroinvestments Rs 11cr in IPCL insider trading case

    By Religare
    |

    Reliance Petroinvestments, a subsidiary of Mukesh Ambani's Reliance Industries (RIL), has been fined Rs 11 crore by Securities and Exchange Board of India (Sebi) in an insider trading case.

    Reliance Petroinvestments has been accused of buying shares of Indian Petrochemicals Corporation Ltd. (IPCL) in early 2007 just before it declared an interim dividend and announced the merger of IPCL with RIL.

    According to the order, from February 27, 2007 to March 2, 2007, RIL's arm bought about 21.32 lakh shares of IPCL at an average price of Rs259.42 per share for Rs55.50 crore prior to the two announcements.

     

    Reliance Petroinvestments received roughly 4.26 lakh shares of RIL against 21.32 lakh shares of IPCL acquired prior to the dissemination of the price sensitive information, it said.

    D. Ravi Kumar, Sebi's Adjudicating Officer said in the order, "It is observed from the Investigation Report that RPIL received a dividend of approx. '127.98 lakhs and made a notional profit of approx. 254.66 lakhs ."

    RPIL holds more than one-third of the total voting power of IPCL and RIL holds the entire share capital of RPIL through two of its wholly owned subsidiaries.

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