SAT dismisses RIL plea against SEBI’s 2017 order on RPL stake sale case

Mumbai : The Securities Appellate Tribunal (SAT) on Thursday dismissed Reliance Industries Limited (RIL)’s appeal against SEBI order dated March 24,2017, in the matter relating to the sale of Reliance Petroleum Limited (RPL) shares by the Company in November 2007. The Tribunal has dismissed RIL’s plea in a 2:1 majority order.

Reacting on the order, RIL has said that there was no irregularities attached to the transactions and it’ll go the Supreme Court against the order.

“ The Company will examine the order passed by the Hon’ble SAT. All trades carried out by the Company were genuine and bona fide. No irregularity can be attached to these transactions. The Company reiterates that it has not violated any law or regulation while selling shares of RPL in November 2007. The Company, under proper legal advice, will prefer an appeal to the Hon’ble Supreme Court of India and is confident of vindicating its position” RIL said in a regulatory filing.

Through an order on March 24, 2017, Sebi had barred RIL and 12 of its promoter group entities from dealing in equity derivatives for alleged unfair trade practices related to the securities market. The securities market regulator had also directed RIL to disgorge Rs 447 crore along with interest.

In March 2007 RIL had decided to sell 4.1 per cent stake in Reliance Petroleum NSE 0.00 %, a listed subsidiary which was later merged with RIL in 2009. But, to prevent a plunge in the RPL share price, the equity was apparently sold first in the futures market and later in the spot market.