Insider case: SAT rejects RIL plea against Sebi; stock ends in green - Economic Times

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MUMBAI: Shares of Reliance Industries extended intraday losses but ended in the green even as the Securities Appellate Tribunal dismissed its plea against market regulator Securities & Exchange Board of India's (SEBI).

RIL had filed an appeal before the SAT challenging the order dated January 2, 2013 passed by SEBI rejecting RIL's consent application.

The company said its primary submission is that rejection of consent application is contrary to the principles of natural justice (without giving an opportunity to RIL of being heard) and in a completely arbitrary, unfair, unreasonable manner.

RIL has option to challenge SAT order in the Supreme Court. SAT dismissed RIL plea against SEBI as new Consent norms are in place.

In 2012, SEBI made amendments to strengthen consent norms by excluding offences such as insider-trading. RIL's second attempt to settle case was turned down again.

Under the new norms, Sebi excluded cases involving larger amount/fines from the settlement process. Though the new norms were issued only in January 2013, Sebi said its provisions were applicable with retrospective effect from April 2010, something RIL termed as arbitrary.

According to media reports, if RIL loses its case, it might be told to pay a fine over Rs 1,500 crore.

RIL made a profit of Rs 513 crore out of insider trading case, alleges SEBI. The new consent mechanism allows the regulator to charge up to three times the profit made through insider trading.

However, a RIL statement said it is not correct that a decision if at all rendered against RIL will imply that the company will be asked to pay over Rs 1,500 crore, as the allegations/ penalty contained in the show-cause notice are merely a charge of Sebi and finality of the same will be achieved only upon completion of adjudication proceedings.

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