Reliance Industries on Friday said it will challenge the Sebi order in the Reliance Petroleum case before the Securities Appellate Tribunal, terming the regulator’s directions as “unjustifiable sanctions”.
In a 10-year-old case, Sebi banned Reliance Industries and 12 others from equity derivatives trading for one year and directed the Mukesh Ambani-led firm to disgorge nearly Rs 1,000 crore for alleged fraudulent trading.
“We are in the process of consulting our legal advisors. We propose to prefer an appeal and challenge the order in the Securities Appellate Tribunal. We remain confident of fully justifying the veracity of the transactions and vindicating our stand,” Reliance Industries said in a statement.
According to the company, the trades in Reliance Petroleum Ltd (RPL) that were examined by Sebi were genuine and bona fide transactions.
The trades were carried out keeping the best interest of the company and its shareholders in view, the statement noted.
“Sebi appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions,” the statement said.
Noting that it has “full confidence” in the judicial process, Reliance Industries said, “We propose to vigorously exercise all options available to us to challenge the untenable findings in the order.”