RIL spokesperson, however, maintained that it has not violated any regulations.
Sebi is said to have issued a show-cause notice in April this year against RIL, stating why it should not take action for possible violation of insider trading norms in relation to sale of shares of then subsidiary RPL in November 2007. Subsequently, Sebi, early last month is said to have amended the notice, asking RIL to explain why it should not be barred from accessing the market, directly or indirectly, and why a direction should not be issued for disgorgement of proceeds from the said sale of RPL shares.
“Reliance Industries has always abided by all rules and regulations of Sebi and hence, has neither violated any provisions of Insider Trading nor has acted in any manner so as to attract provisions under the related sections of Sebi Act,” the spokesperson said. “We have accordingly, submitted our detailed reply to Sebi and have not received any further communication in this regard,” he added.
Based on probe
The notice is said to have been issued following a probe into charges of insider trading in securities of group firm RPL. Sebi is believed to have begun the probe in early 2008, after the issue was raised in Parliament. RIL had sold over four per cent equity in RPL in November 2007, prior to which heavy selling, allegedly by various group entities, was noticed in the futures contract of RPL. It may be noted that RPL was last traded as a separate entity on the bourses on September 24 this year, thereafter it has been merged with RIL.
Further, it is learnt that RIL didn’t show up for the hearings between April and October, resulting in the issue of a fresh show-cause notice by Sebi. Industry sources aver that Sebi may have gathered more data or evidence now on the basis of which it has decided to go ahead with the fresh notice.
