The Securities Appellate Tribunal (SAT) on Friday asked the Securities and Exchange Board of India (Sebi) if it could reconsider the consent plea filed by Reliance Industries (RIL) to settle the six-year-old insider trading case. Without going into the merits of the case, we want to know if Sebi can consider RILs consent application in the interest of justice, said SAT presiding officer JP Devadhar.
In response to the tribunals suggestion, advocate general and Sebis senior counsel Darius Khambata said he would inform the tribunal after discussing the suggestions with the market regulator. SAT will now hear the matter on October 29. RIL had approached SAT against Sebi after its application to settle the matter through a consent mechanism was rejected by the regulator. As per Sebi findings, RIL sold 4.1% stake in RPL in the futures market and, later, in the spot market to cover its sell transactions in the derivatives segment. Through the transactions, the company garnered a profit of R513 crore by selling shares in the derivatives segment. RPL was later merged with the parent company.
(With agency inputs)