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Business News/ Market / Stock-market-news/  Reliance Industries shares slump 3% as Sebi curbs futures trading
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Reliance Industries shares slump 3% as Sebi curbs futures trading

Reliance Industries shares touched a low of Rs1,247.10 per share and fell as much as 3.04% after Sebi curbed trading in futures for one year

Sebi directed Reliance Industries to pay Rs447.27 crore along with an annual interest of 12% dating back to 29 November 2007, which translates into a penalty of around Rs1,300 crore. Photo: ReutersPremium
Sebi directed Reliance Industries to pay Rs447.27 crore along with an annual interest of 12% dating back to 29 November 2007, which translates into a penalty of around Rs1,300 crore. Photo: Reuters

Mumbai: Investors of Reliance Industries Ltd (RIL) on Monday have lost over Rs12,500 crore market value after market regulator penalized the company for unlawful transactions and imposed a one year ban on it and 12 other entities from trading in equity derivatives.

During the day, the Reliance Industries shares touched a low of Rs1,247.10 and fell as much as 3.04%. The scrip closed at Rs1,247.55 on BSE, down 3%, its steepest fall since 17 January, from its Friday’s close while India’s benchmark Sensex Index fell 0.64% to closed at 29,233.44 points.

“Any adverse order by regulator impacts the reputation of the company," said J.N. Gupta, co-founder of Stakeholders Empowerment Services. “We do not see any financial impact due to penalty amount however we expect long legal battle ahead," he added.

Also Read| Sebi bans Reliance Industries from equity derivatives market for a year

SEBI directed Reliance Industries to pay Rs447.27 crore along with an annual interest of 12% dating back to 29 November 2007, which translates into a penalty of around Rs1,300 crore.

Sebi arrived at the unlawful gain of Rs513 crore by considering the net short position that RIL and 12 other entities maintained while trading in the Reliance Petroleum Ltd (RPL) stock in November 2007, ahead of a planned amalgamation of the firm with RIL.

In 2007, RIL sold a 4.1% stake in RPL, but to prevent a slump in the RPL stock, the shares were sold first in the futures market and later in the spot market, covering the share sales in the futures market.

RIL has already said that it will appeal against the Sebi order in Securities Appellant Tribunal.

Shares of the RIL have gained nearly 19% in last five weeks after analysts started upgrading the stock on triggers that the revenue generation for its telecom venture Jio starting from 1 April following the announcement that it will end free service and start charging its customers.

Analysts also expected that its cash flow may go up significantly as its core projects get commissioned by next year. The core projects include its refinery off-gas cracker (ROGC) and petcoke gasifier.

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Published: 27 Mar 2017, 11:27 AM IST
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