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SEBI Imposes Rs 40 Crore Fine On Reliance Industries, Mukesh Ambani Over Manipulative Trades In Reliance Petroleum Back In 2007
Reliance Industries Chairman Mukesh Ambani. Reliance Jio continued on its strong growth trajectory with the telecom company adding 3.7 crore subscribers in the September quarter. Photo: Getty Images
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.
The market regulator found that Mukesh Ambani as the Managing Director of RIL was responsible for the manipulative activities of RIL.
In a 95-page order, Sebi's Adjudicating Officer B J Dilip said any manipulation in the volume or price of securities always erodes investor confidence in the market when investors find themselves at the receiving end of market manipulators.
"I am of the view that Noticee-2(Ambani),being the Managing Director of the RIL,cannot absolve himself and plead ignorance about the entire scheme of manipulative transactions undertaken for the benefit of RIL in the shares of RPL in the Cash and F&O Segment." the order read.
While noting that execution of manipulative trades affects the price discovery system itself, the adjudicating officer 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.”
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