Reliance Industries (RIL) is trying for out-of-court settlement for charges of insider trading and has approached Securities and Exchange Board of India (SEBI) for the same.
This is the third time that the company has approached SEBI. Earlier two proposals were rejected by the SEBI, as according to market regulator, the amount company was willing to pay for the settlement was less. In a consent order, a company or individual accused of violating stock market regulations can end the proceedings by paying a so-called consent fee, without admitting or denying guilt. The company offered to pay a penalty of Rs 3 crore in its first consent offer, while for the second time it offered to pay Rs 10 crore, however both were rejected by the regulator.
The insider trading case emerged in the year 2007 when RIL, which held 75% stake in Reliance Petroleum (RPL) reduced its stake by creating entities who acted as agents of RIL and sold RPL's shares in the futures segment. The insider-trading allegation stems from the fact that there were two transactions -- first in futures and then in cash. Those entities then sold shares in the cash segment and according to the SEBI’s showcause notice, RIL knew about these transactions. Meanwhile, RPL which was set up to build a refinery in Jamnagar no longer exists and has been merged with RIL.
Earlier too, Anil Ambani, the younger brother of RIL chairman Mukesh, and some of his associates, late last year paid a whopping Rs 50 crore, the highest in the history of India's capital market to SEBI in a case concerning Reliance Infrastructure. The payment was technically not a penalty because it was also arrived at through the consent process in which the younger Ambani did not admit or deny guilt.
| Company Name | CMP |
|---|---|
| Reliance Industries | 2941.60 |
| Indian Oil Corp. | 166.65 |
| BPCL | 585.90 |
| HPCL | 477.15 |
| MRPL | 227.00 |
| View more.. | |
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Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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