 "Keeping KG alive took Rs 4.5k cr for RIL, BP, Niko")
The Securities Appellate Tribunal (SAT) on Tuesday set aside an order by the Securities and Exchange Board of India (Sebi) against Reliance Petroinvestments (RPIL), a subsidiary of Reliance Industries. The matter pertains to a case of insider trading.
The market regulator had passed an order in 2013 imposing a penalty of Rs 11 crore on the company. In the order, Sebi had alleged that RPIL had inside information pertaining to Indian Petrochemicals Corporation Ltd (IPCL), which it used to trade in the latter’s shares leading to an illicit gain of Rs 3.82 crore.
The tribunal observed that Sebi’s charge was based on the assumption that the appellant possessed price-sensitive information while making the share purchase.
“The impugned order was passed merely on the basis of presumption without considering the arguments advanced on behalf of the appellant to rebut the presumption,” the SAT order stated.
SAT has directed Sebi to examine the matter afresh and pass an order within three months.
Considering that RPIL has already deposited the penalty amount with Sebi, SAT has not asked for it to be reversed. But, the penalty would be based on the fresh order passed after re-examination.
STORY SO FAR
May 2013: Sebi passed order against RPIL on charges of insider trading
July 2013: RPIL approaches SAT against Sebi order
December 2015: SAT quashes Sebi order
SAT directs Sebi for fresh order in three months
