The Securities and Exchange Commission of India (SEBI) imposed fines of 250 million rupees and 150 million rupees on Reliance Industries (RIL) and its chairman Mukesh Ambani for rigging transactions. The SEBI order stated that RIL had conducted a carefully planned business with its agents to monopolize the open positions of RPL (Reliance Petroleum) futures, and made improper profits by selling RPL stocks in the spot and futures divisions and dumped them. In the last ten minutes of the settlement date, there were a large number of RPL shares in the cash portion, causing the settlement price to fall. The case involved 2007.
It also noted that Mukesh Ambani is the chairman and managing director of RIL, responsible for its day-to-day affairs, and is therefore responsible for the “manipulative transactions” conducted by RIL. The order stated that Navi Mumbai SEZ Pvt Ltd and Mumbai SEZ Ltd allegedly assisted and taught R RIL by providing funds to one of the agents appointed by RIL, which in turn provided funds to 11 other agents to cover the short position The margin. RPL November futures.
The capital market regulator imposed fines of 200 million rupees and 100 million rupees on the Navi Mumbai Special Economic Zone and the Mumbai Special Economic Zone. According to SEBI, it is observed that the board of directors passed a resolution on March 29, 2007, which approved the 2007-08 operating plan and the resource requirements for the next two years (approximately Rs). 87,000 million. Since then, RIL decided to sell approximately 5 RPL shares (up to 225,000 RPL shares) at a net shareholding ratio of Cnet in November 2007.
Subsequently, RIL admittedly appointed 12 agents from October 30, 2007 to November 3, 2007 to represent its RPL futures in November 2007 (the settlement period is from November 1 to November 29) In the transaction. The above-mentioned 12 agents appointed by RIL represent RIL to short in the F&O department, while RIL trades RPL shares in the cash department.
During the period from November 1, 2007 to November 29, 2007, RIL conducted various transactions in the cash section, and RIL conducted various transactions through agents in the F&O section. Since November 15, 2007, RIL’s short position in the F&O sector has continuously exceeded the proposed sale of cash stocks. In addition, the survey also showed that on November 29, 2007, RIL sold 22,5 million shares in the cash portion of the transaction in the last 10 minutes of the transaction, which caused the price of RPL stock to fall, which also reduced the settlement of RPL November futures. price. In the F&O department. All of RIL’s 7.97 million open positions in the F&O department were settled in cash at this low settlement price, generating profits from this short position. According to the order on January 1, the above profit has been transferred to RIL by the agent according to the prior agreement. SEBI noted that from March 24, 2007, until November 29, 2007, RIL required it to pay interest of 447.27 crore rupees and interest calculated at an annual interest rate of 12%. In addition, within one year from the date of the order, RIL is prohibited from trading stock derivatives directly or indirectly in the F&O division of the stock exchange. It said: “I think it is appropriate to consider the nature of deprivation and the direction of illegal actions against RIL as a relevant factor when determining the scope of the penalty.” “I also considered Noticee-3 (Navi Mumbai Special Economic Zone). ) And Noticee-4 (Mumbai Special Economic Zone) to provide loans to the agent appointed by RIL. Taking into account the above circumstances, I will impose an appropriate fine on each lender. The defendant, to deter the defendant and others addicted to this A fraudulent trader.”