Mukesh Ambani
Photographer: Dhiraj Singh / Bloomberg
Photographer: Dhiraj Singh / Bloomberg
The Indian market regulator ordered the billionaire Mukesh Ambani and his conglomerate Reliance Industries Ltd to pay a total penalty of 400 million rupees ($ 5.5 million) for allegedly violating stock trading rules about 13 years ago.
in the order dated 1 January, the The Securities and Exchange Board of India said that Reliance and its representatives were working to earn unfair profits from the sale of shares in Reliance Petroleum Ltd., a former unit, in the money and futures markets. Reliance Industries has to pay 250 million rupees and Ambani, the chairman, is responsible for the alleged handling trade, Sebi said.
A spokesman from Reliance said he could not comment immediately on the order.
After years of investigation, Sebi noted in 2017 that Reliance, along with 12 unlisted trading houses, conducted illegal transactions in Reliance Petroleum shares. They bought stock between March and November 2007, after which the company took short positions – promising that the share price would fall – in the future in November before starting to sell the stock to push up the price. down, according to Sebi.
Trust businesses fall after handling cost, trade ban
That same year, the regulator told the companies profits of 4.47 billion rupees in addition to interest returns and banned trusts from futures trading and options on India’s equity markets for a year. Trust had appealed in the order stating that they were “inexplicable sanctions” on genuine transactions made in the interests of shareholders.
Reliance Petroleum merged with Reliance Industries in 2009. The petrol entity was a registered subsidiary of the Ambani-owned company and distilled 580,000 barrels per day in a special economic zone at Jamnagar in the western Indian state of Gujarat, where was the group. is the largest refining and petrochemical building in the world.