HC makes Reliance Industries party in Sebi-CIC tussle on insider trading disclosure
Sebi had approached the High Court challenging an order of the CIC directing it to disclose the information.
The CIC had passed the order in response to an RTI application filed by Bangalore-based lawyer Arun Agarwal seeking the names of entities alleged to have been involved in insider trading of Reliance Petroleum (RPL) shares on behalf of RIL.
The Sebi contends that such a disclosure would hamper investigations which are still going on in the matter. The counsel for Sebi, JP Cama, also contended before the court that the information is not of a nature which would be of public interest.
A division bench of Justices DY Chandrachud and AA Sayed asked Sebi to inform the court if it is possible for the body to disclose file notings pertaining to the case.
According to Sebi, while the merger process between RPL with RIL was on, RIL was involved in short selling of RPL shares through its entities.
Short selling is a process where an entity or trader sells shares in the market without owning them with expectations that prices will fall, to buy them at a later date and thereby earn a profit.
The company had hedged their sale position in the derivatives segment.
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