MUMBAI (Reuters) – Reliance Industries was fined 250 million rupees ($ 3.42 million) by Indian markets watchdog and chairman Mukesh Ambani on Friday for 150 million rupees for what they said were counterfeit trades while share sale in a subsidiary in 2007.
The Board of Securities and Exchange of India (SEBI) said the oil-to-telecoms conglomerate took on subprime short positions in shares of Reliance Petroleum that were separately listed in 2007 through third parties before selling a stake of 5% in the industry.
Trust did not immediately respond to requests for company comment and comment from Chairman Ambani.
The latest regulation follows a 2017 order for Reliance Industries to surrender about 4.5 billion rupees plus 12% annual interest for what the regulator said were illegal benefits from that deal. It also banned Reliance and some third parties from trading in derivatives for one year.
At the time, Reliance Industries stated that the trades inspected by SEBI were “genuine and bona fide transactions” and that SEBI had “grossly misused real transactions and sanctions that could not be imposed. action ”.
The group is awaiting an appeal hearing in the Supreme Court against the 2017 ruling.
“With this penalty, SEBI is showing its teeth,” Shriram Subramanian, a corporate management expert and founder of consulting firm Agent InGovern, said of management on Friday.
“That treatment scheme was deceptive and against the interest of the secure markets,” SEBI said in a 95-page order Friday adding that Ambani was responsible for the company’s actions.