This ad will auto close in 10 seconds

SAT to hear RPIL plea against Rs 11-cr SEBI penalty on Aug 25

Last Updated: Wednesday, July 10, 2013 - 21:09

Mumbai: Securities Appellate Tribunal Wednesday admitted a petition by the Reliance group entity Reliance Petroinvestments (RPIL), challenging the Rs 11-crore penalty imposed by SEBI for insider trading, and posted it for hearing on August 25.

SEBI had passed the order on May 2, 2013, in the case of alleged insider trading in shares of Indian Petrochemicals Corp (IPCL), an erstwhile subsidiary of Reliance Industries.

Holding Reliance Petroinvestments guilty of violating the insider trading regulations with regard to its dealings in shares of IPCL in early 2007, SEBI had said RPIL made profit of over Rs 3.82 crore through these trades.

It imposed a penalty of Rs 11 crore on RPIL, which was listed as one of the promoter entities by IPCL itself in regulatory filings as of March 31, 2006.

SEBI had asked RPIL to pay the penalty within 45 days.

IPCL, which RIL bought from the government through divestment, used to be a separate entity, but was later merged with RIL and delisted from stock exchanges.

The SEBI order said its investigations showed that RPIL had control over IPCL as "promoter having control over it with a shareholding of around 46 percent".

SEBI investigated the trading in IPCL shares from February 22, 2007 to March 08, 2007 and found that RPIL had indulged in insider trading.

SEBI, earlier this year, had dropped insider trading charges in IPCL shares against Manoj Modi and his wife. Modi is a close confidante of RIL chief Mukesh Ambani and has held some senior positions at group entities in the past.

SEBI said the charges of insider trading violations could not be proved against Modi. SEBI's probe showed an irregular trading pattern in IPCL shares during the period under review, when two key announcements were made by the company -- one about an interim dividend payment and another regarding the amalgamation of IPCL with RIL.


First Published: Wednesday, July 10, 2013 - 21:09
comments powered by Disqus