The company was also asked to disgorge the unlawful gain made in the transaction along with interest amounting to Rs 1,000 crore.
Mumbai: In a partial relief to Reliance Industries Ltd (RIL) that has been barred from investing in equity futures and options segment, the Securities Appellate Tribunal on Wednesday asked the Sebi to consider allowing the company to invest its surplus funds in equity mutual fund schemes.
In March 2017, Sebi passed an order banning RIL and 12 entities from trading in equity F&O in a ten-year-old case pertaining to alleged fraudulent trading in the securities of RIL’s erstwhile listed subsidiary Reliance Petroleum Ltd.
The company was also asked to disgorge the unlawful gain made in the transaction along with interest amounting to Rs 1,000 crore. RIL challenged the order before the Securities and Appellate Tribunal.
Since, certain schemes of mutual funds take exposure to futures and options segment, RIL’s counsel argued that the company’s investment in mutual funds should not be construed as violating the Sebi order.
“We have no direct positions in futures and options. We put money in established funds and we want to know that should not be a problem. These are all standard funds, we are not acquiring any futures. The company has only invested in funds and does not know if this would be hit by the (impugned) order,” argued Harish Salve, senior counsel appearing on behalf of RIL.
While posting the matter for further hearing on August 8, the tribunal advised the firm to make a separate application and asked Sebi to take an appropriate decision as per the applicable law.
Responding to the suggestion, the Sebi counsel asked RIL to make a separate application providing the details of funds in which the firm had made investments.