Securities Appellate Tribunal admits RIL plea against Sebi ban
The Securities Appellate Tribunal (SAT) today admitted Reliance Industries' plea against a Sebi order banning it from equity derivatives markets, with the Mukesh Ambani-led firm saying it should be immediately allowed to invest its surplus funds, including through mutual funds.
The company's counsel Harish Salve requested the court to allow it to at least invest its surplus funds in established MFs till the time an order is passed.
Saying that RIL does not have any F&O positions today, Salve said if it is barred from participating in equity derivatives, then how will it invest its surplus funds? SAT asked RIL to submit a list of MFs to Sebi through which it would participate in equity derivatives markets.
In a nearly 10-year-old case, capital markets regulator Sebi on March 24 had banned Reliance Industries Ltd (RIL) and 12 others from equity derivatives trading for one year, while accusing the company of making "unlawful gains".
Besides, RIL was asked to disgorge Rs 447 crore, along with an annual interest of 12 per cent since November 29, 2007, which itself would be over Rs 500 crore, taking the total disgorgement amount to nearly Rs 1,000 crore.
The case relates to alleged fraudulent trading in the F&O space in the securities of RIL's erstwhile listed subsidiary Reliance Petroleum Ltd (RPL).