Mukesh Ambani, Reliance Industries fined Rs 40 crore for allegedly manipulating Reliance Petroleum shares


India’s market regulator SEBI on Friday imposed a hefty penalty of Rs 25 crore on Reliance Industries while slapping a fine of Rs 15 crore on its chairman, Mukesh Ambani, for allegedly manipulating shares of Reliance Petroleum in November 2007.

Reliance Industries
Photo: India Today

A report by news agency PTI said that the SEBI had also asked Navi Mumbai SEZ Pvt Ltd to pay a penalty of Rs 20 crore. Mumbai SEZ Ltd has been directed to pay Rs 10 crore.

SEBI’s Adjudicating Officer BJ Dilip said in a 95-page order, “In the instant case, the general investors were not aware that the entity behind the above F&O segment transactions was RIL. The execution of the… fraudulent trades affected the price of the RPL securities in both cash and F&O segments and harmed the interests of other investors.”

The SEBI had directed Reliance Industries and certain other entities to disgorge over Rs 447 crore with 12 percent interest for indulging in insider trading in the RPL case.

The RIL had filed an appeal against the penalty but the Securities Appellate Tribunal (SAT) rejected its appeal challenging the order in November last year saying that it lacked any merit. The RIL had said that it will approach the Supreme Court against the SAT’s order.

The latest penalty against Ambani came just days after Chinese billionaire Zhong Shanshan dethroned the former as Asia’s richest businessman.