Sebi dismisses charges against Manoj Modi

The regulator also dismisses insider trading charges against Modi's wife Smita Modi

Sebi today dismissed allegations of insider trading by Manoj Modi, a close aide of Reliance Industries chief Mukesh Ambani, saying charges could not be established after its probe into the six-year-old matter about dealings in shares of erstwhile Indian Petrochemicals Corporation Ltd (IPCL).

Sebi also dismissed insider trading charges against Modi’s wife Smita Modi.

“Considering the facts and circumstances of the case and available records, the alleged violation of... Prevention of Insider Trading Regulations... Against Manoj Modi and Smita Modi do not stand established and the matter is, accordingly, disposed of,” Sebi said today.

Sebi said charges of Manoj Modi being an ‘insider’ according to Sebi’s Prevention of Insider Trading regulations could not be established, and consequently, the allegation against Smita was also not established. The order follows a Sebi investigation into trading of shares of IPCL, an erstwhile subsidiary of RIL that was later merged with the parent company, during the period from February 22, 2007 to March 8, 2007.

Sebi had found that IPCL shares had witnessed an unusual plunge of over eight per cent on March 5, 2007 despite the announcement of an interim dividend.