Mukesh Ambani fined crores, charges of rigging in business, know the case

Mumbai: Reliance Industries (RIL) and its chairman Mukesh Ambani (Mukesh Ambani) have been fined for alleged misconduct in business. The penalty has been imposed by the Securities and Exchange Board of India (SEBI). SEBI has imposed a fine of Rs 25 crore and Rs 15 crore. SEBI has imposed these fines in November 2007 for irregularities in the case related to the purchase and sale of Reliance Petroleum shares in the Cash and Future segments. In 2007, an order has been issued for fines for alleged misappropriation in the purchase and sale of Reliance Petroleum shares. Also Read – Reliance Jio’s big gift on new year, now it will be free for any local number

It was also observed that Mukesh Ambani, being the Chairman and Managing Director of RIL, is responsible for his day-to-day affairs and as such, he is also responsible for the manipulative business carried out by RIL. Sebi said in its order- “It has been found that RIL (Reliance Industries) had planned carefully with its agent. The aim was to earn profits from the sale of shares of RPL in the Cash and Future segments. For this, a large number of RPL shares were sold in the cash segment in the last 10 minutes of business on the day of settlement. Due to this the settlement price of RPL shares fell. This rigging scheme was against the interest of the securities market. Also Read – Zhong Shanshan: Asia’s richest person to beat Munkesh Ambani becomes Asia’s richest person, know how much property ‘Jong’ owns

In order to get to the bottom of the matter, SEBI investigated the sale and purchase of shares in Reliance Petroleum from November 1 to November 29. It was found that RIL’s board had approved a proposal on 29 March 2007. Under this, the approval of the operating plan for the financial year 2008 and the need for funds of about Rs 87,000 crore for the next two years was approved. After this, RIL decided to sell its five per cent stake in RPL in November 2007. Then, Reliance Petroleum appointed 12 agents on its behalf to deal in the futures of RPL. Also Read – Airtel beat Jio once again in October, know what is the whole matter…

Rigging like this
SEBI has also told how this rigging was carried out. In fact, these 12 agents made (short position) deals in the shares of Reliance Petroleum in the futures and options market on behalf of RIL. Then, RIL sold its shares of Reliance Petroleum in the cash segment. Since November 15, RIL’s short positions in the F&O segment continued to grow. This increase was more than the proposed sell-off of RPL shares in the cash segment.

On 29 November 2007, RIL sold 2.25 crore shares of RPL in the cash market. This was done in the last 10 minutes of the selling session. Due to this, the shares of Reliance Petroleum declined sharply. This led to a reduction in the settlement price of RPL shares. In the F&O segment, a total outstanding settlement of Rs 7.97 crore was made in cash. This resulted in profit on short positions. This profit was transferred to RIL by the agent as per pre-determined condition.

SEBI noted that an order dated 24 March 2017 directed RIL to pay an amount of Rs 447.27 crore along with interest at the rate of 12 per cent per annum from 29 November 2007 till the date of payment.

About the author

Kim Diaz

Kim recently joined the team, and she writes for the Headline column of the website. She has done major in English, and a having a diploma in Journalism.

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