 "SAT asks Sebi about rule change effect on RIL case")
The Securities Appellate Tribunal (SAT) has asked the capital markets regulator Securities and Exchange Board of India (Sebi) to file the impact of the recent rule change in consent mechanism on an insider-trading case involving petrochemical company Reliance Industries Limited (RIL).
The tribunal, which hears appeals against decisions of Sebi, has asked for clarity on a rule that disallows a certain kind of violations from being dealt with through monetary settlement under the consent mechanism. SAT adjourned the matter till April 16.
Sebi has been probing RIL for profiting from information, not available to the public, relating to Reliance Petroleum, a subsidiary later merged with the company.
Sebi changed a 2007 circular on consent orders through a fresh circular issued in May 2012.
Sebi has been probing the matter since 2008, and had issued a show-cause notice in 2010.
Sebi had imposed a penalty of Rs 11 crore on RIL for a different instance of insider trading. It found a subsidiary, Reliance Petroinvestments, had traded on price-sensitive information about Indian Petrochemicals before the company's merger with RIL and before it announced an interim dividend.
The tribunal, which hears appeals against decisions of Sebi, has asked for clarity on a rule that disallows a certain kind of violations from being dealt with through monetary settlement under the consent mechanism. SAT adjourned the matter till April 16.
Sebi has been probing RIL for profiting from information, not available to the public, relating to Reliance Petroleum, a subsidiary later merged with the company.
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Sebi has made changes to these consent regulations, saying certain violations including insider trading ones, cannot generally be dealt with through this route.
Sebi changed a 2007 circular on consent orders through a fresh circular issued in May 2012.
Sebi has been probing the matter since 2008, and had issued a show-cause notice in 2010.
Sebi had imposed a penalty of Rs 11 crore on RIL for a different instance of insider trading. It found a subsidiary, Reliance Petroinvestments, had traded on price-sensitive information about Indian Petrochemicals before the company's merger with RIL and before it announced an interim dividend.