Sebi to probe RPL insider trading charges

Market regulator Sebi will further look into trading of shares of Reliance Petroleum Ltd (RPL), which is now part of Reliance Industries, for alleged insider trading during November 2007, Parliament was informed.

Sebi had initiated an investigation into trades carried out in RPL scrip between November 1-29, 2007 to identify possible violation under various regulations, including Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations 2003, Minister of State for Finance Namo Narain Meena informed the Lok Sabha.

Besides, the regulator had also investigated the matter under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, he said.

"Sebi conducted an investigation in the trading pattern in the scrip of RPL for the period of November 1, 2007 to November 29, 2007 on completion of which quasi-judicial proceedings were initiated by Sebi against Reliance Industries Ltd (RIL) with issue of a show-cause notice under Section 11(1), 11B and 11(4) of the Regulation 11(1)...", he said.

Based on the reply furnished by RIL, competent authority in Sebi has been directed to further investigate the matter, he said.