Reliance Industries Begins Arguments Against SEBI Order In SAT
Reliance Industries Ltd. on Wednesday began its arguments against a 2017 Securities and Exchange Board of India order barring it from the equity derivative market in the Securities Appellate Tribunal, claiming it had done no wrong in the case.
The SEBI had barred the company and 12 of its promoter group entities from dealing in equity derivatives.
The watchdog had barred the company and the entities for alleged unfair trade practices related to the securities market.
Through an order on March 24, 2017, SEBI had also directed RIL to disgorge Rs 447 crore along with interest.
Appearing on behalf of RIL, senior counsel Harish Salve said there is nothing in the law which would prevent the company from undertaking the transactions for which it was acted against by the SEBI.
He also suggested that after considering the law, the capital markets regulator may have imposed a small penalty. The real question, he said, is whether the transactions were a part of market manipulation strategy.
The case dates back to March 2007, when Mukesh Ambani-led RIL decided to sell 5 percent stake in Reliance Petroleum, a listed subsidiary which was later merged with RIL in 2009.
SEBI ruling was related to alleged fraudulent trading in the derivatives space in the securities of Reliance Petroleum.
Salve said sale of shares got RIL Rs 4,000 crore and the trades in the future and options got it Rs 400 crore.
He also agreed with SEBI’s contention of RIL having funded a few of the entities in the case, pointing that the company had an agreement to fund them.