SAT asks Sebi for written submissions on RIL case

Hearing adjourned to April 16

The Securities Appellate Tribunal (SAT), which hears appeals against decisions of the stock market regulator, has asked it for written submissions on the impact that recent rule changes may have on an insider trading case involving petro-chemical giant Reliance Industries Limited (RIL).

The Securities and Exchange Board of India(SEBI) has been investigating RIL for profiting from information which was not available to the public involving Reliance Petroleum, a subsidiary which was later merged with the company. The tribunal has asked for clarity on recent rule changes which disallow certain kind of violations from being dealt with through monetary settlement under the so-called 'consent' mechanism.

SAT adjourned the matter to April 16.

The stock market regulator has made changes to these consent regulations, saying that certain violations including insider cannot generally be dealt with through this route. The tribunal has asked for more clarity on the impact that the change would have on the RIL case.
 

SEBI has been investigating the matter since 2008, and had issued a show cause notice in 2010. The company attempted to settle the matter through the consent mechanism. Sebi turned down their application and made changes to the rules by which violations like insider trading cannot generally be dealt with through the consent route.

Reliance then moved SAT against these Sebi decisions.