SEBI rejects settlement in Reliance Industries dispute

MUMBAI Fri Jan 4, 2013 4:55pm IST

Reliance Industries' KG-D6 facility located in Andhra Pradesh is pictured in this undated handout photo. REUTERS/Reliance Industries/Handout

Reliance Industries' KG-D6 facility located in Andhra Pradesh is pictured in this undated handout photo.

Credit: Reuters/Reliance Industries/Handout

Related Topics

Stocks

   

MUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) rejected Reliance Industries Ltd's (RELI.NS) request to settle a long-pending dispute over the energy conglomerate's 2007 sale of stock futures in a unit, citing rule changes in late May that took a tougher stance on suspected violations.

The SEBI included Reliance Industries and a handful of its units on a list of 149 companies or individuals whose requests to settle market rules violation cases with financial payments had been rejected, a notice issued late on Thursday showed.

For full list click link.reuters.com/fan94t

A Reliance spokesman declined to comment on the SEBI announcement.

The dispute with Reliance stems from SEBI's investigation into suspected insider trading when the energy conglomerate sold stock futures of Reliance Petroleum before folding the unit into its operations.

Reliance Industries has denied engaging in any insider trading in that transaction.

SEBI amended its procedures for so-called consent applications, or requests for out-of-court settlements, in May 2012, effectively banning the use of monetary payments to resolve suspected cases of market rule violations, including insider trading.

The regulatory changes followed criticism that consent orders were being inappropriately used by those under investigation to avoid potentially more damaging rulings by the regulator on wrongdoing.

Uncertainty had remained, however, over whether consent applications such as Reliance Industries' that were submitted before the rule change would be allowed to go ahead.

Although the possibility of a settlement under the old consent applications has been removed, the regulator's brief statement said only that proceedings would continue in accordance with the law, offering no clues on how much longer the case might drag on.

Reliance shares in Mumbai had edged down 0.4 percent as of 1:25 p.m., compared with a 0.5 percent gain in the NSE's energy subindex.

(Reporting by Rafael Nam; Editing by Edmund Klamann)

FILED UNDER:

Reuters Showcase

Uber's Woes

Uber's Woes

Uber, other taxi-hailing apps hit new roadblock in Delhi.  Full Article 

Transfer Pricing

Transfer Pricing

India's Vodafone decision eases tax worries for Shell, others.  Full Article 

Facebook Earnings

Facebook Earnings

Facebook tops Wall Street revenue target in 4th quarter.  Full Article 

Governance Reforms

Governance Reforms

IMF sets June deadline for progress on governance reforms.  Full Article 

Fed's Stance

Fed's Stance

Fed upbeat on U.S. economy, cites strong job gains.  Full Article 

Tumultuous Run

Tumultuous Run

McDonald's CEO Don Thompson leaving.  Full Article 

Samsung Results

Samsung Results

Samsung Elec's smartphone primacy under threat from Apple after weak Q4.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage