Sebi's Reliance order: Key dates and numbers

In an order that was in the works for nearly a decade, the Securities and Exchange Board of India (Sebi) on Friday barred the country’s second largest company by market capitalisation Reliance Industries from the equity derivatives market for certain unfair trading practices. The order included directions for disgorgement of unlawful gains of Rs 447 crore made in November 2007 through an elaborate trading plan involving a dozen agent entities and coordinated trades across cash and derivatives market. Here are a few key dates and numbers:

Timeline

March 2007	RIL board decides to raise funds by selling 5 per cent in RPL
May-Nov 2007	11 of 12 agent entities open trading accounts with different brokers
31 October-03 Nov	Agent entities enter into agreements to repatriate gains with RIL
November	Agent entities enter short positions at higher levels
November 6-23	RIL cash market operation offloading 4.01 % or 180.4 million shares for Rs 4,023 crore
November 29	RIL sells 19.5 million shares in last ten minutes bringing down prices sharply, helping agent entities square off at lower levels

Who made what of the dozen RIL agents

Gujarat Petcoke and Petro Product Supply Pvt	Rs 48.00 cr
Aarthik Commercial Pvt. Ltd	Rs 53.87 cr
LPG Infra Structure India Private Ltd	Rs 42.57 cr
Relpol Plastic Products Pvt Ltd	Rs 60.51 cr
Fine Tech Commercial Pvt Ltd	Rs 33.76 cr
Pipeline Infra Structure	Rs 54.42 cr
Motech Software Pvt Ltd	Rs 38.56 cr
Darshan Securities Pvt Ltd	Rs 37.17 cr
Relogistics (India) Pvt Ltd	Rs 10.94 cr
Relogistics Rajasthan Private Limited	Rs 0.49 cr
Vinamra Universal Traders Pvt. Ltd	Rs 60.3 cr
Dharti Investment and Holdings Ltd	Rs 72.53 cr
Total	Rs 513.12 cr

Computation of the Unlawful gains 

1.  Average Net short open position in derivatives held by Noticee. Nos. 2-13 across 29 days (Nov. 1 to 29)* = 85.1 million            shares 

2. OI limit available to noticees 2-13 = 10.9 million shares 

3. OI limit illegally procured = 74.2 million shares 

4. Average gain per share = 513 cr / 85.1 million =  Rs 60.28 per share 

5. Total illegal gains made = 60.28 X 74.2 million = Rs 447.27 crore 
(* based on day-wise “cumulative net short” shown in Annex -12 to the SCN)