SAT defers hearing on RIL's insider trading case to Nov 11
Mumbai: The Securities Appellate Tribunal (SAT) on Tuesday put off to November 11 the hearing on Reliance Industries' (RIL) appeal against market regulator Sebi in the 2007 insider-trading case.
At the last hearing on October 11, SAT had suggested to Sebi to look at considering the RIL application for a consent settlement that allows companies and individuals to settle disputes by paying a fine without admission or denial of the alleged wrongdoing.
Today, Sebi submitted an affidavit to the tribunal following which the quasi judicial body adjourned the hearing to study the affidavit.
The tribunal has been hearing the appeal filed by RIL against Sebi in the insider-trading case related to its erstwhile subsidiary Reliance Petroleum Ltd (RPL) dating back to 2007.
The company is also contesting the regulator's decision of last May to keep the case out of the consent mechanism, suggesting the amount involved is too high.
Under Sebi's consent mechanism, companies can seek to settle cases with the regulator after paying certain charges and disgorgement of any ill-gotten gains.
This is the ninth time that the hearing in the case has been adjourned.
The case dates back to 2007, when before the merger of the RPL with itself, RIL short-sold 4.1 per cent stake in Reliance Petroleum for Rs 4,023 crore in the futures market to allegedly prevent a price correction and later in the spot market, covering the share sales in the futures market.
As per the Sebi findings, the company booked a profit of Rs 513 crore in the futures segment through this deal worth Rs 4,023 crore. RPL was later merged with RIL.
Sebi claimed that the company was aware of the sale of shares and sold futures ahead of that, therefore amounting to insider trading.
Following this, Sebi ordered a probe and found that RIL had violated insider-trading norms. Though it approached Sebi for consent settlement, the regulator did not entertain the application, forcing RIL to move SAT.