HC makes Reliance Industries party in Sebi-CIC tussle on insider trading disclosure
- India’s surgical strikes along LoC show intent to act strongly against terrorists
- US NSA Susan Rice calls up Ajit Doval, says 'expect Pakistan to take action against terror'
- PM Modi holds Cabinet Committee on Security meeting; Rajnath, Jaitley, Doval present
- Narendra Modi's review meet on MFN status to Pak postponed to next week
- Day after sharing terror information with Pakistan, NIA revises details
The Bombay High Court on Tuesday directed that Mukesh Ambani-led Reliance Industries Limited (RIL) be made a party to a dispute between the capital market regulator Securities and Exchange Board of India (Sebi) and the Central Information Commission (CIC) over disclosure of information on allegations of insider trading by the company.
Sebi had approached the High Court challenging an order of the CIC directing it to disclose the information.
The CIC had passed the order in response to an RTI application filed by Bangalore-based lawyer Arun Agarwal seeking the names of entities alleged to have been involved in insider trading of Reliance Petroleum (RPL) shares on behalf of RIL.
The Sebi contends that such a disclosure would hamper investigations which are still going on in the matter. The counsel for Sebi, JP Cama, also contended before the court that the information is not of a nature which would be of public interest.
A division bench of Justices DY Chandrachud and AA Sayed asked Sebi to inform the court if it is possible for the body to disclose file notings pertaining to the case.
According to Sebi, while the merger process between RPL with RIL was on, RIL was involved in short selling of RPL shares through its entities.
Short selling is a process where an entity or trader sells shares in the market without owning them with expectations that prices will fall, to buy them at a later date and thereby earn a profit.
The company had hedged their sale position in the derivatives segment. It first sold the shares in derivatives segment and then covered the derivatives position, which resulted in a hefty profit.
The case is now slated to be heard on December 19.
RIL sought a consent order from the Sebi twice, but it didn't work as investigation was not over.
- Let’s not allow debate about what it means to be Indian to be held hostage to jingoists and bigots
- Telescope: From Fawad Khan to Kalki Koechlin, journeys to keep an eye on
- Shouldn’t weekly off day be a matter of choice, instead of being dictated by law?
- India’s search for alternatives to regional forum must quicken
- Struggle against caste system & capitalism are inextricably linked
- Power struggle within weakens Samajwadi Party already undergoing an identity crisis in UP