SAT to hear RIL-SEBI case next month
Mumbai: The Securities Appellate Tribunal (SAT) will resume on March 14 a hearing on Reliance Industries' appeal against market regulator SEBI in a case related to alleged violation of insider trading norms in sale of shares of the company's erstwhile subsidiary RPL in 2007.
The matter was last heard by SAT on February 21, when the counsel for both Sebi and Reliance Industries Ltd (RIL) sought a new date and mutually agreed that the hearing should be posted for March 14 when both sides would be present at the tribunal.
It is clarified that PTI had erroneously reported on February 21 that the matter was adjourned at the request of RIL counsel Somasekhar Sundaresan because he was not prepared.
RIL had approached SAT against SEBI after its application to settle the matter through a 'consent mechanism' was rejected by the regulator.
Under Sebi's consent mechanism, companies can seek to settle cases with the market regulator after payment of certain charges and disgorgement of any ill-gotten gains.
RIL has challenged the Sebi's decision and also the recent changes made by the regulator in regulations governing settlement of cases through the consent mechanism, especially for cases already under consideration.
In May 2012, Sebi had tightened the norms for settlement through consent framework, as a result of which many cases, including those related to insider trading, are not being able to be settled through this mechanism.
On January 3, Sebi published a list of 149 consent pleas, including 16 from entities related to RIL group, which it had found unsuitable for settlement through consent process.
These include applications of RIL itself and that of RIL Chairman Mukesh Ambani's close aide Manoj Modi.