Insider trading: RIL using "time-buying" tactics, SEBI tells SAT
26 September 2013
The Securities Appellate Tribunal (SAT) on Wednesday adjourned the hearing to 11 October in the appeal by Reliance Industries Ltd against the Securities & Exchange Board of India in a long-running insider trading case.
The tribunal also turned down an intervention petition by an individual who had alleged that there could be collusion between SEBI and the Mukesh Ambani-led RIL to settle the case. The SAT asked the petitioner to approach the Bombay High Court or the Supreme Court, saying the tribunal is not the appropriate forum to hear such a plea.
Meanwhile, the tribunal continued the final arguments in the seven-year-old case between stock market regulator SEBI and the country's largest corporate entity by net worth.
Making the final arguments, RIL counsel Janak Dwarkadas said his client has not yet received all relevant documents from SEBI. This claim was disputed by advocate general Darius Khambata, appearing for SEBI. He alleged that RIL was using "time-buying" tactics.
Khambata will conclude his arguments at the next hearing.
The matter concerns RIL's appeal against SEBI, which charged the conglomerate with violation of insider trading norms in the sale of shares of its erstwhile subsidiary Reliance Petroleum (RPL) in 2007. RPL was later merged with RIL.
Reliance appealed to SAT against SEBI after its application to settle the matter through a 'consent mechanism' was rejected by the regulator.
Under SEBI's consent mechanism, companies can seek to settle cases with the regulator after paying certain charges and disgorging any ill-gotten gains.