While Reliance is enjoying its success of Jio services, SEBI has slapped Reliance by banning it from derivatives trading and also ordered a fine of Rs 1000 Crore. The ban is up to one year and this is a huge blow to Reliance industries. For getting illegal profits with fraud trading, SEBI has ordered Reliance to give back Rs 1000 Crore. Along with Reliance12 other companies are also in the list which has got banned from trading for one year.
SEBI posed Rs 447 crore but from 2007it has to bare the 12% interest as well. This made a total amount of Rs 1000 Crore. SEBI officials stated that Reliance and 12 other companies should not do trading directly or indirectly for 12 months in Futures and Options (F & O) category. The ban period has already started from March24, 2017. Reliance sub-brand Reliance petroleum was alleged for doing fraud trading in Futures & Options category.
This case was being investigated since 10 long years and at last Reliance got a huge blow. SEBI also ordered that Reliance should pay this fine amount within 45 days’ time period. Maha Lingam stated that “To protect the rights of investors and to keep their trust on the system we have taken this decision. Respective companies can leave their current open positions”.
The 12 other companies which were imposed fine are Gujarat petrococ & petro product supply, Artik commercials, LPG Infrastructure India, Pipe line Infrastructure India, Darsan securities,Relogistics and few other companies. All these companies were banned from one year trading under Future & Options (F&O). There are no reports on the fine imposed for these 12 companies by SEBI.
When Reliance said that it would settle the case SEBI did not agreed for that. Reliance Industries stated that it would challenge SEBI’s decision at tribunal. Reliance said “We are approaching our legal advisors on this aspect and we can prove that fraud trading is not done in the past by Reliance Industries. SEBI has mistaken these transactions and trading. SEBI has given misleading and wrong judgment”.