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The Securities Appellate Tribunal has asked market regulator SEBI to consider the consent application filed by Reliance Industries Ltd in the interest of justice. The tribunal’s Presiding Officer J.P. Devadhar has also asked the market regulator to file a rejoinder and adjourned the case to October 29.
The case relates to an alleged violation of insider trading norms in the sale of shares of its erstwhile subsidiary, Reliance Petroleum, in 2007. Following this, Reliance Petroleum was merged with RIL. During the process, RIL had unlawfully gained over Rs 500 crore.
The company had submitted a consent application to SEBI in 2010 through which companies can seek to settle cases with the regulator after paying certain charges and disgorgement of any ill-gotten gains. However, the application was rejected.
RIL’s appeal
Following this, the Mukesh Ambani-led conglomerate dragged the market regulator to the tribunal challenging the rejection of the consent application. RIL has challenged SEBI’s decision and also the recent changes made by the regulator in regulations governing settlement of cases through the consent mechanism, especially those already under consideration.
In May 2012, SEBI tightened the norms for settlement through the consent framework. As a result, many cases, including those related to insider trading, are not being settled through this mechanism.
> pani.priyanka@thehindu.co.in
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