Reliance Industries on Tuesday said the Securities and Exchange Board of India’s conclusions in the order barring the company from trading in equity derivatives were based on “surmises, conjectures and hindsight view of the transactions and on untenable reasoning.”

The markets regulator on Friday penalised the company for unlawful transactions and imposed a one-year ban on it and 12 other entities from trading in the equity derivatives segment for allegedly indulging in fraudulent trades in respect of divestment of 5 per cent stake by Reliance Industries in its subsidiary Reliance Petroleum in 2007.

SEBI had directed Reliance Industries to pay ₹447.27 crore along with annual interest of 12 per cent from November 29, 2007. The total penalty amount, including interest, could work out to in excess of ₹1,000 crore. In a notice to the stock exchanges, RIL on Tuesday said it has not indulged in any market manipulation or fraudulent and unfair trade practices in either futures or cash segments, and reiterated that it would make an appeal to the Securities Appellate Tribunal against the order.

“There are no profits or losses in a hedging transaction, leave alone undue profits,” the company said and added: “Selling at marginally below the last traded price in a genuine delivery transaction in the cash segment is not a fraudulent and manipulative trade practice.”

The trades by the company have not caused any prejudice to any market participant, it further said.

After tumbling about 3 per cent on Monday, shares of RIL closed on Tuesday at ₹1,245.75, down 0.4 per cent, on the NSE.

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