sebi:Order/BD/AA/2020-21/10063-10066
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Facts / Headnote
All four Noticees found in violation of PFUTP Regulations, 2003 and SEBI Circular; penalties imposed under Section 15HA of the SEBI Act
Provisions invoked
- s. 11B
- s. 11
- s. 24
- s. 15
- s. 19
- s. 12A
- s. 10
- s. 15H
- s. 27
- s. 15I
- s. 15J
- s. 15F
- s. 28A
- s. 2(26)
- s. 226
- s. 68
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 4(1)
- Reg. 4(2)
- Reg. 3(a)
- Reg. 3(b)
- Reg. 4(2)(d)
Parties
- Reliance Industries Limited (Noticee-1)
- Shri Mukesh D. Ambani (Noticee-2)
- Navi Mumbai SEZ Pvt. Ltd. (Noticee-3)
- Mumbai SEZ Ltd. (Noticee-4)
Holding
The Adjudicating Officer held that RIL (Noticee-1) violated PFUTP Regulations, 2003 by executing a manipulative scheme through 12 appointed agents to corner open interest in November 2007 RPL Futures and by 'marking the close' by dumping 1.95 crore RPL shares in the last ten minutes of trading on November 29, 2007; Noticee-2 (Mukesh Ambani) was held liable as Managing Director responsible for day-to-day affairs; Noticee-3 and Noticee-4 were held to have aided and abetted by providing funds. Penalties of Rs. 25 crore, Rs. 15 crore, Rs. 20 crore and Rs. 10 crore respectively were imposed.
Full text
Page 2 of 95 Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) and various rules and regulations made thereunder.
Page 3 of 95 (x) Motech Software Pvt. Ltd. (xi) Relogistics (India) Pvt. Ltd. (xii) Relogistics (Rajasthan) Pvt. Ltd. The above entities are hereinafter collectively referred to as ‘Agents’.
Page 4 of 95 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 Shri Mukesh D. Ambani (hereinafter referred to as ‘Noticee-2’), 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. In view of the same, SEBI initiated Adjudication Proceedings under Section 15HA of the SEBI Act, 1992 (hereinafter referred to as ‘SEBI Act’) read with Section 12A(a), (b), (c) of the SEBI Act against RIL for violation of Regulation 3 (a), (b), (c), (d) and Regulation 4(1), 4(2)(d) & (e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations, 2003’) & SEBI Circular no. SMDRP/DC/CIR-10/01 dated November 2, 2001 against RIL and Noticee-2. It was also observed that Navi Mumbai SEZ Pvt. Ltd. (hereinafter referred to as ‘NMSEZ’ / ‘Noticee-3’) and Mumbai SEZ Ltd. (hereinafter referred to as ‘MSEZ’ / ‘Noticee-4’) 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. In view of the same, Adjudication Proceedings have also been initiated against Noticee-3 and Noticee-4 for the violation of Regulation 3(b), (c), (d) and Regulation 4(2)(d) & (e) of PF
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Source: SecMarx — sebi:Order/BD/AA/2020-21/10063-10066. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.