Mumbai: SEBI has fined two more companies including Reliance Industries and its chairman Mukesh Ambani. In 2007, he was fined for the alleged misappropriation of the shares of Reliance Petroleum (RPL). SEBI issued an order in this regard on Friday.
RPL merged with RIL in 2009
Reliance Industries (RIL) did not answer questions asked about it. He has challenged a SEBI order given earlier in this case in the Supreme Court. In the order issued on Friday, SEBI has imposed a penalty of 25 crores on RIL and 15 crores on Ambani. SEBI has also imposed a penalty of Rs 20 crore on the Navi Mumbai SEZ. He has been asked to pay a penalty of Rs 10 crore related to this case. Reliance Petroleum in Reliance Industries in 2009.
Rigging is planned to earn profits
Sebi’s plan to manipulate profits to argue that some parties had entered into RPL futures before RIL sold a 5 per cent stake in RPL. These parties had done these deals on behalf of RIL. The price of RPL futures in the futures and options segment (F&O) segment was reduced after RIL reduced its stake in RPL. RIL had made a lot of profit from this.
The execution of the scheme with the help of 12 agents.
Sebi’s Adjudicating Officer BJ Dilip said in the 95-page order, “It has been found that RIL had conceived the scheme with its agent in mind. The motive was cash and futures. In the segment, there was profit making from the sale of RPL shares. For this, a large number of RPL shares were sold in the cash segment in the last 10 minutes of business on Settlement Day. This caused the settlement price of RPL shares to fall. ” This rigging scheme was against the interest of the securities market.
SEBI went to the bottom of the matter
SEBI went to the bottom of the matter. For this, the buying and selling of shares of RPL during November 1 to November 29 in 2007 was investigated. It was found that RIL’s board approved a resolution on 29 March 2007. Under this, the approval of the operating plan for the financial year 2008 and the need for funds of about Rs 87,000 crore for the next two years was approved. After this, RIL decided to sell its 5 per cent stake in RPL in November 2007.
This kind of rigging has also been told by SEBI how this rigging was done. In fact, these 12 agents made deals (short positions) in RPL shares in the futures and options market on behalf of RIL. Then, RIL sold its shares of RPL in the cash segment. Since November 15, RIL’s short positions in the F&O segment continued to grow. This increase was more than the proposed sell-off of RPL shares in the cash segment.
On 29 November 2007, RIL sold 2.25 crore shares of RPL in the cash market. This was done in the last 10 minutes of the selling session. Due to this there was a sharp decline in the shares of RPL. Due to this the settlement price of RPL shares decreased. In the F&O segment, a total outstanding settlement of Rs 7.97 crore was made in cash. This resulted in profit on short positions. The agent transferred the RIL to RIL as per the pre-fixed condition.
SEBI fined Ambani
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