RIL insider trading case hearing pushed to Friday

The Securities Appellate Tribunal adjourned the hearing of Reliance Industries appeal in a matter involving charges of insider trading to the end of the week.

The case will now be heard on Friday, 15th November.

The stock market regulator had been investigating the company for alleged insider trading involving its erstwhile subsidiary Reliance Petroleum. Meanwhile, the company applied to the regulator asking that the matter be dealt with through the consent route.  

A consent application allows for the settlement of charges through payment of an amount decided upon by the regulator. A Sebi advisory committee had turned down the Reliance appeal for the route.  Reliance Industries had filed an appeal against the Sebi move in the Securities Appellate Tribunal, the three member body which hears appeals by entities against decisions taken by the regulator.

The case was last heard on October 11. The regulator reiterated its stand on the consent order during the hearing after the tribunal asked if it would be willing to reconsider the application.

Sebi had imposed a penalty of Rs 11 crore against Reliance Petroinvestments on charges of insider trading in a separate case. Reliance Petroinvestments is also a Reliance subsidiary. The case involved purchases in Indian Petrochemicals before certain announcements including a decision to merge the company with Reliance Industries and also one to declare an interim dividend.

Reliance was down 1.35% on Monday, closing at Rs 863.7 on the BSE, compared to a 0.85% fall in the Sensex.