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RIL declines as Sebi imposes penalty

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RIL lost 1.91% to Rs 1,261.60 at 10:38 IST on BSE after the markets regulator Sebi has directed the company to disgorge Rs 447.27 crore in the matter relating to trading of shares in Reliance Petroleum.

Meanwhile, the S&P BSE Sensex was down 145.90 points or 0.5% at 29,275.50.

On the BSE, 1.67 lakh shares were traded on the counter so far as against the average daily volumes of 1.94 crore shares in the past one quarter. The stock had hit a high of Rs 1,278.50 and a low of Rs 1,259 so far during the day.

The stock had hit a 52-week high of Rs 1,326.75 on 7 March 2017 and a 52-week low of Rs 925.70 on 23 May 2016. It had outperformed the market over the past one month till 24 March 2017, surging 8.76% compared with the Sensex's 1.83% rise. The scrip had also outperformed the market over the past one quarter, gaining 21.55% as against the Sensex's 12.98% rise.

The large-cap company has equity capital of Rs 3251.28 crore. Face value per share is Rs 10.

The markets regulator Securities and Exchanges Board of India (Sebi) directed Reliance Industries (RIL) to disgorge Rs 447.27 crore in the matter relating to trading of shares in Reliance Petroleum (RPL) by RIL in November 2007. Sebi also barred RIL from the futures and options (F&O) segment for a year and asked it to settle all existing open positions. It will also have to pay 12% per annum on the disgorgement amount of Rs 447.27 crore since 29 November 2007 onwards. RIL has been asked to pay up within 45 days of the order.

Meanwhile, RIL after market hours on Friday, 24 March 2017, said that the trades in RPL shares which were examined by Sebi were genuine and bona fide transactions. These were carried out keeping the best interest of the company and its shareholders, in view, it added.

RIL said that Sebi appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions.

RIL said it is in the process of consulting its legal advisors. It proposes to prefer an appeal and challenge the order in Securities Appellate Tribunal (SAT). RIL said it remains confident of fully justifying the veracity of the transactions and vindicating its stand.

RIL said that it has full confidence in the judicial process and it proposes to vigorously exercise all options available to it to challenge the untenable findings in the order.

RIL's consolidated net profit rose 3.6% to Rs 7506 crore on 17.6% growth in net sales to Rs 79408 crore in Q3 December 2016 over Q3 December 2015.

Reliance Industries (RIL) is India's largest private sector company. RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 27 2017. 10:27 IST