The Securities Appellate Tribunal has disposed of an appeal filed by Reliance Industries Ltd challenging a show-cause notice issued by the Securities and Exchange Board of India in an alleged case of insider trading.
The tribunal has dismissed the appeal saying the market regulator had given enough access to the documents on which the show cause notice was based to Mukesh Ambani-led RIL contrary to what the company had appealed.
It also said SEBI has agreed to furnish those documents again to the company by December 23.
SAT, will hear RIL’s second appeal against another SEBI decision regarding settling the insider trading case through consent mechanism, in January next.
The market regulator had refused to settle the case through this mechanism after it came out with stringent norms for settlements through this route.
The case relates to the merger of Reliance Petroleum with Reliance Industries and the short-sale of shares in the former by entities related to the latter. RIL is alleged to have made gains of around Rs 500 crore through the deal in 2007.