New Delhi: The Securities and Exchange Board of India (SEBI), which regulates the stock market in India, has imposed a penalty of Rs 40 crore on Reliance Industries and its owner Mukesh Ambani. SEBI took this action in November 2007 over alleged misappropriation in the stock business of the erstwhile Reliance Petroleum Limited.
Reliance Industries has been fined Rs 25 crore and Mukesh Ambani as well as two other units with a fine of Rs 15 crore for this rigging. Apart from this, Navi Mumbai SEZ Pvt. Ltd. 20 crores and Mumbai SEZ Ltd. Has been directed to pay a fine of Rs 10 crore. The case relates to the purchase and sale of RPL shares in the cash and futures segment in November 2007. Earlier, RIL decided to sell a 4.1 percent stake in RPL in March 2007. This listed subsidiary was later merged into RIL in 2009.
In his 95-page order, SEBI officer BJ Dilip, who heard the case, said that any manipulation of the quantity or price of securities always hurts the confidence of investors in the market and they are the most affected in the market manipulation.
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