RIL turns volatile on buzz SAT dismisses appeal on consent order

Reliance Industries was up 0.25% to Rs 1,015.60 at 15:14 IST on BSE on reports the Securities Appellate Tribunal dismissed the company's plea against market regulator Securities & Exchange Board of India.

Meanwhile, the BSE Sensex was up 339.27 points, or 1.35%, to 25,439.19.

On BSE, so far 4.17 lakh shares were traded in the counter, compared with an average volume of 4.36 lakh shares in the past one quarter.

Trading in the counter was volatile. The stock rose 0.63% at the day's high of Rs 1,019.40 so far during the day. The stock fell 1.28% at the day's low of Rs 1,000.10 so far during the day.

The stock hit a 52-week high of Rs 1,142.50 on 16 May 2014. The stock hit a 52-week low of Rs 765 on 28 August 2013.

The stock had underperformed the market over the past one month till 27 June 2014, falling 6.87% compared with 2.24% rise in the Sensex. The scrip had also underperformed the market in past one quarter, rising 12.29% as against Sensex's 12.99% rise.

The large-cap company has an equity capital of Rs 3232.72 crore. Face value per share is Rs 10.

According to reports, the Securities Appellate Tribunal (SAT) on Monday, 30 June 2014, dismissed an appeal by Reliance Industries (RIL) in an over-six-year-old fraudulent trade practices case between RIL and the Securities and Exchange Board of India (Sebi).

The Sebi initiated a case of insider trading against RIL in 2008. The case pertained to alleged trading of shares in Reliance Petroleum by RIL ahead of their merger with RIL. The oil & gas major was accused of making profit on the back of price-sensitive information which was not made public.

Sebi had alleged that RIL, prior to the merger of Reliance Petroleum with itself in 2007, had short-sold 4.1% stake in Reliance Petroleum valued at Rs 4023 crore to prevent a slump in the stock.

The Reliance Petroleum shares were sold first in the futures market and later in the spot market, covering the share sales in the futures market, and thus making a profit of Rs 513 crore in the deal, it was alleged.

The SAT was hearing RIL's appeal challenging the process adopted by Sebi while refusing to settle the case under the consent process, which allows companies and individuals to settle disputes by paying a sum of money without admission or denial of wrongdoing.

SAT in its ruling reportedly dismissed RIL's appeal on the grounds that it is not maintainable, said SAT presiding officer J. Devadhar. RIL can move the Supreme Court, by way of a writ petition, challenging Sebi's consent process, reports added.

Reports added that Sebi in May 2012 tightened consent norms by excluding serious offences such as insider trading, violations of listing disclosures and illegal pooling of money from the settlement process. The new norms are retrospective, applying to all cases from 20 April 2007. The regulation also requires an entity to file for consent within 60 days of receiving a Sebi show-cause notice.

Sebi has maintained that under the new norms, this case cannot be settled as it relates to serious fraudulent and unfair trade practice by RIL, reports said.

RIL's net profit rose 0.8% to Rs 5631 crore on 13.1% growth in net sales to Rs 95193 crore in Q4 March 2014 over Q4 March 2013.

RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.

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