Reliance Industries to challenge Sebi order
NEW DELHI: Reliance Industries (RIL) on Friday termed the Securities and Exchange Board of India (Sebi)’s order in the Reliance Petroleum case as “unjustifiable sanctions” and said it would move the Securities Appellate Tribunal to challenge the order.
On Friday, Sebi had asked the Mukesh Ambani-led firm to ‘disgorge’ Rs 447.27 crore made “unlawfully” through dealing in shares of its erstwhile subsidiary Reliance Petroleum. The regulator also banned RIL and 12 others from equity derivatives trading for one year.
“We are in the process of consulting our legal advisors. We propose to prefer an appeal and challenge the order in the Securities Appellate Tribunal. We remain confident of fully justifying the veracity of the transactions and vindicating our stand,” RIL said in a statement.
The case dates back to 2017, when RIL and other related entities took short positions in the futures and options segment in the Reliance Petroleum stock, at a time when a large block of shares in the company was to be sold in the cash segment.
According to the company, the trades in Reliance Petroleum that were examined by Sebi were genuine and bona-fide transactions.
“Sebi appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions,” the statement said.
Noting that it has “full confidence” in the judicial process, Reliance Industries said, “We propose to vigorously exercise all options available to us to challenge the untenable findings in the order.”