Insider trading: Sebi reply sought in a mth

Written by feBureau | Mumbai | Updated: Apr 9 2013, 06:01am hrs
The Securities Appellate Tribunal (SAT) has directed the capital market regulator to file a written reply within four weeks in the matter related to the probe of insider trading charges against Reliance Industries (RIL).

A tribunal bench, comprising presiding officer PK Malhotra and member Jog Singh, posted the matter for hearing on June 14 after the advocate general of Maharashtra, Darius Khambatta, representing Sebi, said that the regulator will file a reply mentioning the grounds on which it is opposing RILs plea.

RIL the countrys largest listed entity moved the tribunal after Sebi rejected its consent application to settle an insider trading matter. The Mukesh Ambani-controlled company has also challenged Sebis refusal to provide documents based on which a show-cause notice was issued to the company.

While RIL has challenged the regulators decision of rejecting its application for settling the case through the consent route, Sebi has said that the watchdog has the right to decide on accepting or rejecting any consent application.

The tribunal has also given two weeks to RIL to study the Sebi reply and file a rejoinder if it wants to. According to submissions by the Sebi counsel, RIL is alleged to have made unlawful gains of R513 crore by selling shares of the companys erstwhile subsidiary Reliance Petroleum in 2007.

Khambatta further said that though the amended guidelines for consent mechanism do provide for certain discretionary powers to the high-powered action committee (HPAC) to decide on matters to be settled through consent the committee did not want to exercise its discretion in this matter.