Reliance Industries Ltd. has asked the Securities Appellate Tribunal (SAT) to allow the company to invest in mutual funds till its appeal against the market regulator’s penalty remains pending in the tribunal.
Senior advocate Harish Salve argued on behalf of RIL against the Securities and Exchange Board of India’s (SEBI) order that had disallowed the company from dealing in equity derivatives, directly or indirectly, for a period of one year.
The tribunal, in turn, asked RIL to submit a list of mutual funds in which it intends to invest and also submit an application with the market regulator.
The March 24 SEBI order had also imposed a penalty of nearly Rs 1,000 crore on the company for alleged market manipulation, with regards to shares of Reliance Petroleum Ltd. (RPL) in 2007.
RIL said in a media release that there was neither market manipulation nor undue profits which accrued to them from the transaction. It said the company had been legally advised that “…. SEBI’s conclusions were based on surmises, conjectures and (a) hindsight view of the transactions and on untenable reasoning”.
There had been no prejudice caused to any market participant and that the company was confident that their position would be upheld by the appellate forum, the release said.
The SAT will next hear the matter on August 7.
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