Securities and Exchange Board of India (SEBI), the regulator of the stock market, was established in November 2007 by Reliance Petroleum Limited. (RPL) on Friday fined Mukesh Ambani, chairman and managing director of Reliance Industries Ltd, as well as two other companies for allegedly causing trouble in the share trading. Reliance Industries (RIL) has been fined Rs 250 crore and Ambani Rs 15 crore. Apart from this, Navi Mumbai SEZ Private Limited has been asked to pay a fine of Rs 20 crore and Mumbai SEZ Limited a fine of Rs 10 crore.
The lawsuit relates to the sale and purchase of RPL shares in the Cash and Futures section in November 200R. Earlier, in March 2007, RIL decided to sell a 4.1 per cent stake in RPL. The listed subsidiary was later merged with RIL in 2009.
In the 959-page order, CBI officer BJ Dilip, who heard the case, said that any change in the amount or price of securities always hurts the confidence of investors in the market and they suffer the most in market manipulation.
He said in the order, ‘In this case, the general investors do not know that the entity behind this deal in the futures and options section is RIL. Fraudulent trades affect the prices of RPL securities in both cash and futures and options and hurt the interests of other investors.
The hearing official said the right price does not come out of the business mess. He said, ‘I think this kind of troublemaker should be dealt with severely so that such activities in the capital market can be stopped. There is no response from RIL at the moment