SEBI bans RIL from equity derivatives market for a year
The Securities and Exchange Board of India (Sebi) on Friday banned Reliance Industries Ltd (RIL) and 12 others from equity derivatives trading for one year and directed RIL to disgorge nearly Rs 1,000 crore for alleged fraudulent trading in a 10-year-old case.
The ban, in effect from Friday, relates to alleged fraudulent trading in the Futures and Options (F&O), or derivatives, space in the securities of RIL's former listed subsidiary Reliance Petroleum (RPL) - now merged with the listed parent firm.
A stock goes banned in F&O when its derivative contracts cross 95 per cent of the market-wide position limit (MWPL).The Mukesh Ambani-led RIL has been asked to pay Rs 447 crore, which along with an annual interest of 12 percent since November 29, 2007, taking the total disgorgement liability for the company to nearly Rs 1,000 crore. It has been asked to pay the amount in 45 days.
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