BUSINESS

Sebi to probe RIL insider trading charge

December 27, 2004 16:54 IST
The Securities and Exchange Board of India will examine the legal aspects of alleged insider and unfair trading practices in Reliance Industries' scrip in the wake of RIL vice-chairman and managing director Anil Ambani's comments before the company's board meeting.

"This is definitely a sensitive matter and market regulator is looking into the insider trading angle and provisions of unfair trade practices," senior SEBI officials told PTI on Monday.

They, however, did not elaborate if any full-fledged enquiry is being ordered into the entire RIL episode.

SEBI chairman G N Bajpai and director C Anantharaman are believed to have discussed the entire Reliance issue, including its corporate governance, the officials said.

Just before the board meeting, Anil told reporters waiting outside Maker Chambers IV, Reliance group headquarters, that he was not informed on the buyback proposal before it was communicated to the stock exchanges.

He also said the buyback proposal was inappropriate and "there are several other issues that need to be addressed."

Hinting at a possible insider trading, Ambani said "there is more than that meets the eye that is happening at the stock markets if one looks upto the run-up to the stock prices."

SEBI had already put the trading into Reliance stock scrips on watch, since the proxy war between the brothers - Mukesh and Anil Ambani - broke out in November.

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