SEBI bars Mukesh Ambani's Reliance from futures trading for 1 year

The case related to alleged fraudulent trading in the F&O space in the securities of RILs erstwhile listed subsidiary Reliance Petroleum.

The Securities and Exchange Board of India has banned Reliance Industries and 12 others from equity derivatives trading for one year and directed the Mukesh Ambani-led firm to disgorge nearly Rs 1,000 crore for alleged fraudulent trading in a 10-year-old case.

"The order will be challenged," a spokesperson of the company said. PTI reported that Reliance Industries has been asked to disgorge Rs 447 crore, along with an annual interest of 12 per cent since November 29, 2007, which itself would be more than Rs 500 crore, taking the total disgorgement amount to nearly Rs 1,000 crore. The case related to alleged fraudulent trading in the F&O space in the securities of RILs erstwhile listed subsidiary Reliance Petroleum.

The order stated that the ban would be in force for one year. other entities that are banned are: Gujarat Petcoke and Petro Product supply, Aarthik Commercials, LPG Infrastructure India, Relpol Plastic Products, Fine Tech Commercials, Pipeline Infrastructure India, Motech software, Darshan Securities, Relogistics (India), Relogistics (Rajasthan), Vinamara Universal Traders and Dharti Investment and Holdings.

PTI reported that Reliance Industries group had earlier sought to settle the case, but SEBI had refused. The proceedings in the long-pending case were expedited in the last few months. Reliance Petroleum has been merged with the listed parent firm. Reliance Industries issued a statement with regards to the matter and has said that SEBI had imposed unjustifiable sanctions.

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