The regulator of the Indian market, the Securities Exchange Board of India (SEBI) penalized Mukesh Ambani headed Reliance Industries Ltd. alongside two more other business entities on Friday. The cause for this penalty was alleged to be manipulation of trades in Reliance Petroleum Ltd. for the year 2007.
The penalty imposed on RIL is of ₹24 crores while it’s ₹15 crores on Ambani concerning a firm that was later merged with Reliance Industries Ltd.
“In the instant case, the general investors were not aware that the entity behind the above F&O Segment transactions was RIL. The execution of the aforesaid fraudulent trades affected the price of the RPL securities in both cash and F&O Segments and harmed the interests of other investors,” the order said.
“It was also observed that Mukesh D. Ambani, being the Chairman and Managing Director of RIL, was responsible for its day-to-day affairs and thereby, liable for the manipulative trading done by RIL,” the order claimed.
Navi Mumbai SEZ Pvt. Ltd. and Mumbai SEZ Pvt. Ltd. have also been penalized for ₹20 Cr. and ₹10 Cr. respectively for providing aid and for abetting RIL. It was using providing funds to one of the RIL appointed agents and in turn, it provided funds to 11 other agents.
RIL in its earlier claims mentioned that it shall approach the Supreme Court against the SAT order.