Reliance Industries Ltd led by Mukesh Ambani has been charged with Insider Trading of Reliance Petroleum prior to its merger with RIL in 2007. Now Business Line reports that,
The company has proposed a payment of Rs 2 crore towards settlement of the case, sources confirmed. SEBI is understood to have assessed the gains from the alleged insider trading at Rs 513 crore.
Is it notevident that RIL under Mukesh Ambani is accepting to the charges and that is why they have proposed a settlement of Rs 2 cr for making Insider Trading profits of Rs 513 cr [USD 110 mn].
Now compare Mukesh Ambani’s case with Raj Rajaratnam of Galleon Hedge Fund, who was indicted in insider trading charges making just $20 mn profits and his life was made miserable by the Securities and Exchange Commission. Raj is made to close down his hedge fund, so serious has the matter been.
Now does India’s highest body related to Stocks and Securities SEBI has the will to prosecute Mukesh Ambani as the Chairman of RIL under whose leadership, possible insider trading has taken place ? Ask anybody on Dalal Street about Reliance & Ambanis and they will tell you this is just peanuts what has come out, at least that’s what we heard.