The Securities Exchange Board of India (SEBI) is reported to have issued show-cause notice to Mukesh Ambani led Reliance Industries (RIL) and its group entities, following an investigation into charges of insider trading in securities of group firm Reliance Petroleum (RPL).
RIL had sold more than 4% equity in RPL in November 2007, prior to which heavy selling, said to be by various associate entities, was noticed in the futures contract of RPL. The gains made from these transactions are expected to be over Rs 500 crore.
Sources quoted that SEBI had begun the probe in early 2008 after the issue was raised in the parliament.
In the notice, SEBI is understood to have asked RIL and 12 group entities involved in this why action should not be taken against them under the SEBI Act and the Prevention of Fraudulent and Unfair Practices Regulation.
Both SEBI and RIL refused to comment in this regard.
FreePress.in Comment: – We believe that there will be no outcome of this investigation and the same will be closed or suspended forever. Financial Frauds like this are worse to the country when compared to incidents such as 26/11.