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The Securities Appellate Tribunal (SAT) has admitted an appeal filed by Reliance Petroinvestments (RPIL) against a Securities and Exchange Board of India order on violation of insider trading norms. The tribunal will now hear the matter on August 25.
The market regulator has accused RPIL, a subsidiary of Reliance Industries, of insider trading and imposed a penalty of Rs 11 crore in May.
The case dates back to 2007, when Reliance Petroinvestments had purchased about 2.13 million shares in Indian Petrochemicals Ltd (IPCL) between February 27, 2007, and March 2, 2007, at an average price of Rs 259.42 a share for Rs 55.5 crore prior to the two announcements of the merger of Reliance Inudustries and IPCL. SEBI had said that RPIL made profits of over Rs 3.82 crore through these trades.
RPIL had also filed an application in November 2011 to settle the case through the consent mechanism, which was rejected by the market regulator in November 1, 2012.
SEBI said in its order that its investigations into charges of insider trading norm violations by RPIL showed that the company was having control over IPCL as a promoter “with a total shareholding of approximately 46 per cent.”
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