Reliance Industries Ltd has sent its reply to SEBI's show-cause notice to it in connection with the share sale of Reliance Petroleum Ltd by the company.

In its 2010-11 annual report, Reliance Industries stated, “SEBI has issued a show-cause notice in connection with the sale of shares of erstwhile Reliance Petroleum Limited by the company. The company has submitted its reply to the same.”

The company, however, claimed that it has been in compliance with the regulations of the capital market regulator, SEBI.

“There has been no instance of non-compliance by the company on any matter related to capital markets during the last three years and hence no penalties or strictures have been imposed on the company by the stock exchanges or the SEBI or any other statutory authority,” RIL said in its annual report.

Reliance Petroleum Ltd (RPL) had been merged with the parent company in 2009 and subsequently delisted from the stock market. The show-cause notice was sent on allegations of a breach of insider trading norms in connection with the sale of RPL shares by RIL in 2007.

SEBI had begun quasi-judicial proceedings against RIL after it found violations of insider trading regulations pursuant to its investigation into the trading pattern of the RPL stock for the period between November 1 and 29, 2007. It had first issued show-cause notices to RIL in May 2009. The initial probe began in early 2008.

RIL's consent application to settle the probe has been rejected by SEBI on numerous occasions. The first consent appeal was made by RIL in November 2009, followed by another one in August 2010, but both were rejected by the SEBI.

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