India News – According to information received by World News, Sebi has imposed a penalty of Rs 40 crore on the country’s largest company Reliance Industries and its chairman Mukesh Ambani. A fine of Rs 25 crore has been imposed on Reliance Industries and Rs 15 crore on Ambani.
The case relates to trading of shares of Reliance Petroleum. In this case, a penalty of Rs 20 crore has been imposed on New Mumbai SEZ Private Limited and Rs 10 crore on Mumbai SEZ Limited.
Shares bought and sold to influence prices
According to information received by World News, Reliance Petroleum was the first separate listed company. In March 2007, Reliance Industries announced the sale of 4.1% shares of Reliance Petroleum. In November 2007, shares of Reliance Petroleum were bought and sold when the company’s stock prices started falling. SEBI found in the investigation that the buy-and-sell was done wrongly to affect the price of the shares. Significantly, Reliance Petroleum was merged with Reliance Industries in 2009.
Common investors did not know that Reliance Industries is behind this trading
SEBI has said in the 95-page order that any manipulation of the share price reduces investor confidence in the market, as such manipulation causes loss to investors. According to information received by World News, according to SEBI, the common investors in this case did not know that Reliance Industries was behind this buy and sell of shares. The buy-and-sell was done incorrectly, which impacted Reliance Petroleum shares. This left ordinary investors at a loss.
Tribunal upheld SEBI’s previous decision
SEBI had earlier asked Reliance Industries and 12 promoters to deposit Rs 447 crore on 24 March 2017. They were also banned from trading their shares.
According to information received by World News, the company had appealed against it in the Securities Appellate Tribunal. But in November 2020, the tribunal rejected the company’s appeal, upholding SEBI’s decision. Reliance Industries had then said that it would challenge the tribunal’s decision in the Supreme Court.
In the information given to the stock exchange after the decision of the tribunal, Reliance Industries had said that no rules have been violated in the trading of shares.