According to today’s order, RIL(Reliance Industries Limited) had entered into a well-planned operation with its Agents to corner the open interest in RIL’s erstwhile listed subsidiary Reliance Petroleum Ltd (RPL) futures to earn undue profits from the sale of RPL shares in both cash and future’s segments and to dump large number of RPL shares in the cash segment during the last ten minutes of trading on the settlement day, resulting in a fall in the settlement price.
“It was also observed that Mukesh D. Ambani, being the Chairman & Managing Director of RIL, was responsible for its day-to-day affairs and thereby, liable for the manipulative trading done by RIL,” the order said, adding, it was also observed that Navi Mumbai SEZ Pvt. Ltd. and Mumbai SEZ Ltd. have allegedly aided and abetted RIL by providing funds to one of the agents appointed by RIL, who in turn provided funds to other 11 agents for making the margin payments for the short positions in RPL November Futures,” the order stated.
The case holds to a Sebi order, dated 24 March, 2017, claiming fraudulent trading in the Futures and Options (F&O) segment of the securities of RPL which was merged with the former in 2009.
In March 2007, RIL had sold 4.1% of its stake in RPL. However, to prevent a plunge in the RPL share price, the equity was apparently sold first in the futures market and later in the spot market.