Sebi files caveat in RIL insider-trading case ================================= The Securities and Exchange Board of India (Sebi) on Wednesday filed a caveat in the Supreme Court to prevent any ex parte order in its six-year-old dispute of alleged fraudulent trade practices by Reliance Industries Ltd (RIL) This move by the capital markets regulator came two days after the Securities Appellate Tribunal dismissed RIL’s appeal challenging the process adopted by Sebi while refusing to settle the case under the consent process, which allows companies and individuals to settle disputes by paying a sum of money without admission or denial of wrongdoing. The dispute relates to alleged contravention of the Fraudulent and Unfair Trade Practices (FUTP) regulations ahead of a merger between Reliance Petroleum Ltd and RIL in 2007. SAT, in its ruling, said that RIL’s appeal is not maintainable. RIL is likely to move the Supreme Court challenging Sebi’s consent process, by way of a writ petition. The case relates to Reliance Petroleum’s merger with RIL through a process that involved the alleged short sale of shares in RPL by entities related to RIL ahead of the union. A short sale occurs when borrowed shares are sold with the intention of buying them back later at a lower price.
Posted on: Thu, 03 Jul 2014 01:54:02 +0000
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