RIL slips on ‘consent case' talk

 K.S. Badri Narayanan | Updated on January 25, 2011 Published on January 25, 2011


The stock of Reliance Industries fell sharply on Thursday. The stock touched a low of Rs 954.2 during intra-day trade, but recovered slightly to close at Rs 969.75, a drop of 1.20 per cent over the previous day's close.

Trading volume at 19.15 lakh shares on the BSE is higher than the two-week average of 7.56 lakh shares.

According to marketmen, the company is likely to settle the case relating to allegations of insider trading with the market regulator soon. But marketmen say the company may have to pay a much higher amount than what the Anil Ambani group companies paid to settle its cases.

According to market sources, Reliance Industries' top officials recently met with SEBI officials to settle the case before the incumbent chairman, Mr C.B. Bhave retires. Speculation has it that the figure could be in excess of Rs 200 crore.

There were some apprehensions in the market circle that SEBI consent order might invoke similar restriction that was imposed on Mr Anil Ambani and his firms (banning them from secondary market trading) on Reliance Industries as well.

The Reliance Industries case relates to the alleged violation of insider trading norms in 2007 in Reliance Petroleum (RPL), which got merged with Reliance Industries subsequently.

It was learnt that SEBI had earlier rejected Reliance Industries' two proposals to settle the case through consent route.

A section of marketmen also said that shifting of Mr Murli Deora from Petroleum Ministry had an impact on the stock. According to them, Mr Deora, who is considered close to the group, being moved out of the Petroleum Ministry may not have a long-term impact on the stock.

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Published on January 25, 2011
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