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The Securities Appellate Tribunal (SAT) on Thursday adjourned hearing Reliance Industries Ltd (RIL)’s plea against the capital markets regulator, Securities and Exchange Board of India (Sebi), to April 8, in a case related to alleged violation of insider trading norms.
The Mukesh Ambani-led company, in its appeal before SAT, has challenged Sebi's rejection of its consent request and refusal to give documents related to the case.
SAT member Jog Singh on Thursday said the tribunal would see on what ground the market regulator took a decision that the case was not consentable. “Some partial opportunity was not given. We will see.. what motivated you to change the policy. What was the ground on which you took this decision that it is not consentable,” said Singh.
He said that whether to accept or reject a consent request was Sebi's domain, but SAT had to see whether the discretion was exercised in a proper manner. The consent mechanism, similar to out-of-court settlements, is an agreement between the regulator and a violator to drop charges of wrongdoing without admission or denial of guilt. The settlement terms under consent could involve monetary penalty and voluntary debarring from the capital market.
The Sebi counsel said the appeal against the rejection of consent was not maintainable as the party which filed for a consent application gave the undertaking that it would not appeal. This insider trading case dates backs to 2007, when RIL had allegedly made unlawful gains by trading in the shares of erstwhile subsidiary Reliance Petroleum during its merger with the parent.
RIL hearing had already been adjourned on two occasions—January 24 and February 21. Lack of members at SAT is one reason for adjournments. Currently, SAT has only two members--P K Malhotra, the officiating presiding officer, and Jog Singh, only recently appointed as member. The government is in search of another member for the tribunal.
