Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday imposed a fine of 11 crore on a subsidiary of Reliance Industries Ltd after finding it guilty of insider trading in a case that dates back to 2007.

The case pertains to insider trading charges against Reliance Petroinvestments Ltd (RPIL), a company controlled by RIL, in the shares of the erstwhile Indian Petrochemicals Corp Ltd (IPCL), a company that RIL had acquired and in which RPIL held a controlling stake.

Sebi in its order posted on its website on Thursday night observed that RPIL possessed insider information on IPCL, which it used to trade in the latter’s shares, resulting in a gain of 3.82 crore.

The Sebi order stated that it was established that being an insider, RPIL had access to information pertaining to IPCL’s amalgamation with RIL and regarding a dividend that IPCL was to announce and used it to trade in its shares.

An RIL spokesperson said the company was examining the order and had no immediate comments.

Sebi on 11 April had dismissed allegations of insider trading charges against Manoj Modi, a close aide of RIL chairman Mukesh Ambani, saying charges could not be established after its probe into the IPCL case. Sebi had also dismissed insider trading charges against Modi’s wife, Smita Modi.

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