The Securities and Exchange Board of India (SEBI) on Friday imposed penalties on Reliance Industries (RIL), its Chairman and Managing Director Mukesh Ambani, and two other entities for alleged manipulative trading in the shares of erstwhile Reliance Petroleum (RPL) back in November 2007.
Fines of Rs 25 crore and Rs 15 crore have been imposed on RIL and Ambani, respectively. Besides, Navi Mumbai SEZ has been asked to pay a penalty of Rs 20 crore, and Mumbai SEZ has been directed to pay Rs 10 crore.
The case pertains to sale and purchase of RPL shares in the cash and the futures segments in November 2007.
This followed RIL's decision in March 2007 to sell a 4.1% stake in RPL, a listed subsidiary that was later merged with RIL in 2009.
While noting that execution of manipulative trades affects the price discovery system itself, SEBI's Adjudicating Officer B J Dilip said, "I am of the view that such acts of manipulation have to be dealt sternly so as to dissuade manipulative activities in the capital markets."
On March 24, 2017, SEBI had ordered RIL and certain other entities to disgorge over Rs 447 crore in the RPL case. In November 2020, the Securities Appellate Tribunal (SAT) dismissed the company's appeal against the order.
At that time, RIL had said it would challenge the tribunal's order in the Supreme Court.