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Updated: March 5, 2010 16:33 IST

SEBI to further probe insider trading charges in RPL shares

PTI
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RIL Chairman Mukesh Ambani. File photo
AP RIL Chairman Mukesh Ambani. File photo

Market regulator SEBI will further look into trading of shares of Reliance Petroleum Ltd (RPL), which is now part of Reliance Industries, for alleged insider trading during November 2007, Parliament was informed today.

SEBI had initiated an investigation into trades carried out in RPL scrip between November 1-29, 2007, to identify possible violation under various regulations, including Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations 2003, Minister of State for Finance Namo Narain Meena informed the Lok Sabha.

Besides, the regulator had also investigated the matter under Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992, he said.

“SEBI conducted an investigation in the trading pattern in the scrip of RPL for the period of November 1, 2007 to November 29, 2007 on completion of which quasi-judicial proceedings were initiated by SEBI against Reliance Industries Ltd (RIL) with issue of a show—cause notice under Section 11(1), 11B and 11(4) of the Regulation 11(1)...”, he said.

Based on the reply furnished by RIL, competent authority in SEBI has been directed to further investigate the matter, he said.

However, Mr. Meena said, no instances of insider trading by the promoters and associates of various companies in the shares of RPL have to come to the notice of the market regulator SEBI during period November, 1 to November 6, 2006.

In reply to another question, Mr. Meena said, as per the information furnished by National Crime Record Bureau, 5.9 lakh fake currency totalling Rs 22.39 crore were seized in 2009.

To strengthen the security of notes further, incorporation of latest security features is underway, he added.

Besides, he said, a high-level Committee headed by the Union Home Secretary comprising officials from central agencies and other senior police officials has been constituted to monitor and draw a comprehensive strategy to combat fake currency.

At the same time, the government has nominated the Central Bureau of Investigation as the nodal agency to monitor investigation of fake currency note cases, he said.

For increasing indigenous production of bank note paper, projects for setting up three new production lines with annual capacity of 16,000 metric ton have already been sanctioned, he added.