The Securities and Exchange Board of India has rejected a second attempt by India's largest private sector corporation, Reliance Industries (RIL), to settle charges of insider trading out of court, according to a report.
SEBI will instead continue its investigation into trades carried out by entities linked to RIL in November 2007, said a senior official. It's not clear when the so-called consent application, akin to a negotiated settlement, was rejected, but it is believed to be fairly recent, reports The Economic Times.
The regulator is probing the sale of stock futures of Reliance Petroleum (RPL) in the first week of November 2007, a few days before parent RIL started trimming its stake in its refining arm. The sellers were not well-known market players, but they were allegedly located at the address of some RIL group companies, according to information provided to SEBI by unknown complainants.
The regulator has not issued a final order on the veracity of these complaints. It will pass a final order after hearing RIL. SEBI's orders can be challenged before the Securities Appellate Tribunal (SAT).
After Sebi set in motion quasi-judicial proceedings against RIL, the company sought a consent order or a negotiated settlement between the regulator and a capital market entity. The firm or person facing a probe can submit an application for such an order, without admission of guilt and without denial of liability.
RIL's external spokesman said he could not comment for the story.