Mukesh Ambani, chairman of India's B Reliance Company, is embroiled in a stock market scandal 13 years ago.
The Securities and Exchange Board of India has ordered Ambani and his company to pay a fine of Rs 400 million for illegally exchanging shares of Reliance Petroleum. India's market regulator issued the order at the beginning of the new year. However, Reliance did not immediately comment.
Along with Reliance Industries and Mukesh Ambani, Nabi Mumbai ACZ and Mumbai ACZ have also been fined. In their case, the fine amount is 20 crore and 10 crore rupees respectively.
In March 2007, Reliance Industries Limited (RIL) decided to sell a 4.1 percent stake in Reliance Petroleum. In November of that year, the shares of the branch company were traded in the advance market. RIL merged it with itself in 2009. In this case, SEBI had alleged that the rules of the advance transaction had been broken. Although Reliance wanted to settle the case through negotiation, they did not agree.
After a lengthy investigation, in March 2017, SEBI ruled that Reliance would not be able to directly or indirectly trade derivatives in the stock market for one year. The directive was also given to 12 other organizations. Reliance was also asked to return Rs 447 crore for making "unjust profits".
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