Why did SEBI fined Mukesh Ambani?

A detailed thread. 🧶

On January 1st SEBI ordered billionaire Mukesh Ambani and his conglomerate Reliance Industries Ltd. to pay a combined penalty of Rs 40 crores for alleged manipulative and fraudulent trading in the month of November 2007.

#mukeshambani #SEBI #RIL #Reliance
During the first week of November 2007, 12 entities — all connected to Reliance Industries Limited decided to bet against Reliance Petroleum limited. 
The12 agents decided to bet against RPL using what is called a futures contract.
In this context, it means, the agents were hoping to make a windfall on the back of a steep decline in RPL’s stock price.  The steeper the decline in stock price, the more money the agents were standing to make.
And if the stock price rallied, they were looking at losing a lot of money as well. So you have to have a fair bit of gumption to make such a trade.  Unless… you knew for certain that the stock price was poised to tumble — Which is what SEBI believes actually happened.
On November 29, 2007, just 10 minutes before the end of trading, Reliance Industries limited sold close to 2 crore shares of RPL. The selling triggered mass panic and within a moment’s notice, the stock price collapsed.
So SEBI contests that RIL and the agents colluded together in a bid to profit off of this transaction. How much money did they make?

  Rs447 crores according to the regulator!
Making such trades isn’t illegal per se. But the thing is — The agents hadn’t disclosed their relationship with RIL when placing their bets, giving regular retail investors the impression that these were independent trades made by random people not associated with RIL.
That is a bit dubious. But there is more — Together they were trading volumes far beyond the permissible limit.  Now the counsel for RIL argued that this is a farce. None of them had individually breached the limits imposed by SEBI — except for two agents, which was dealt with.
However, SEBI refused to look at the equation this way. They knew the 12 agents were acting at the behest of Reliance Industries Limited. They knew they could only make trades authorized by RIL.
So even if they hadn’t breached the limits at the individual level, they most certainly did so as a group. And since RIL had no authority to trade such large volumes, it was illegal for them to ask the agents to do so.
But RIL had one more defence. See, the company had already decided to sell shares of Reliance Petroleum Limited in a board meeting earlier. They were doing this in a bid to raise some extra money and it was perfectly legal for them to do so.
But here’s the thing — At the time they believed RPL’s stock price was overvalued and they knew that if it suffered a sharp erosion in value, they wouldn’t have been able to raise the money they originally intended.
So they claimed they were simply asking their agents to trade those futures just so that they could make some extra money in the event the stock price did collapse.
Offsetting their losses. 
Protecting their downside. 
“Hedging,” their bets so to speak. 
But SEBI notes that there is no documentary evidence to support this claim.
So clearly SEBI wasn’t buying this argument. And back in 2017, the regulator mandated RIL and its agents to pay Rs 1,000 crores for their misdeeds. In addition, the Friday’s judgment imposes an additional penalty on RIL, Mukesh Ambani and two other entities.
Now this one is a bit tricky because RIL has always contested that two senior officers were responsible for the trades. They argued that Mukesh Ambani had nothing to do with this. But once again, SEBI refused to acknowledge this assessment.
And in the end, imposed fines of Rs 25 crores and Rs 15 crores on Reliance Industries Ltd. and Ambani, respectively. 

Retweet if you liked the thread.
Follow for more such upcoming threads.

Soure : Finshots.

More from India

Now this is provoking me to write!

The schism of BJP- RSS ideology.

Full blown Schizophrenia if one wants to psychoanalyze BJP.
#doublebind where a parent keeps giving double messages to their confused children. They adore the parent for one thing and hate them for another.


How can BJP sustain itself with this kind of internal schism? In other words no samanjas or clarity of what they stand for?

Its exploding now. The madness.
People airing out Gandhi's sexuality out of context and irrelevant to him being killed by Godse.Supporting Godse's action

But not understanding that the same reasons why Godse was killed are the reasons why BJP leaders today hail Gandhi as Bapu or Mahatma. On #MartyrsDay
Very dangerous mind or #headgames being played out here. Our country is a large scale mental asylum with broken psyche.

Sanatana Dharma does not need more Nathuram Godses. We need more Shri Vidyaranyas and Adi Shankaras who would build Hindu Rajya through Raja and kshatriya Dharma.
Nathuram Godse as a Brahmana weakened his brahmanatwam by adopting a Nationalist ideology.

Instead he could have used his pourusham to garber a Sanatani movement to fight against INC and Gandhian ideology.

He dissented from RSS and started his own Hindu Rashtra Dal and also was a member of Hindu Mahasabha. However he did not fall back on our darshana s to understand

You May Also Like

Margatha Natarajar murthi - Uthirakosamangai temple near Ramanathapuram,TN
#ArudraDarisanam
Unique Natarajar made of emerlad is abt 6 feet tall.
It is always covered with sandal paste.Only on Thriuvadhirai Star in month Margazhi-Nataraja can be worshipped without sandal paste.


After removing the sandal paste,day long rituals & various abhishekam will be
https://t.co/e1Ye8DrNWb day Maragatha Nataraja sannandhi will be closed after anointing the murthi with fresh sandal paste.Maragatha Natarajar is covered with sandal paste throughout the year


as Emerald has scientific property of its molecules getting disturbed when exposed to light/water/sound.This is an ancient Shiva temple considered to be 3000 years old -believed to be where Bhagwan Shiva gave Veda gyaana to Parvati Devi.This temple has some stunning sculptures.
#ஆதித்தியஹ்ருதயம் ஸ்தோத்திரம்
இது சூரிய குலத்தில் உதித்த இராமபிரானுக்கு தமிழ் முனிவர் அகத்தியர் உபதேசித்ததாக வால்மீகி இராமாயணத்தில் வருகிறது. ஆதித்ய ஹ்ருதயத்தைத் தினமும் ஓதினால் பெரும் பயன் பெறலாம் என மகான்களும் ஞானிகளும் காலம் காலமாகக் கூறி வருகின்றனர். ராம-ராவண யுத்தத்தை


தேவர்களுடன் சேர்ந்து பார்க்க வந்திருந்த அகத்தியர், அப்போது போரினால் களைத்து, கவலையுடன் காணப்பட்ட ராமபிரானை அணுகி, மனிதர்களிலேயே சிறந்தவனான ராமா போரில் எந்த மந்திரத்தைப் பாராயணம் செய்தால் எல்லா பகைவர்களையும் வெல்ல முடியுமோ அந்த ரகசிய மந்திரத்தை, வேதத்தில் சொல்லப்பட்டுள்ளதை உனக்கு

நான் உபதேசிக்கிறேன், கேள் என்று கூறி உபதேசித்தார். முதல் இரு சுலோகங்கள் சூழ்நிலையை விவரிக்கின்றன. மூன்றாவது சுலோகம் அகத்தியர் இராமபிரானை விளித்துக் கூறுவதாக அமைந்திருக்கிறது. நான்காவது சுலோகம் முதல் முப்பதாம் சுலோகம் வரை ஆதித்ய ஹ்ருதயம் என்னும் நூல். முப்பத்தி ஒன்றாம் சுலோகம்

இந்தத் துதியால் மகிழ்ந்த சூரியன் இராமனை வாழ்த்துவதைக் கூறுவதாக அமைந்திருக்கிறது.
ஐந்தாவது ஸ்லோகம்:
ஸர்வ மங்கள் மாங்கல்யம் ஸர்வ பாப ப்ரநாசனம்
சிந்தா சோக ப்ரசமனம் ஆயுர் வர்த்தனம் உத்தமம்
பொருள்: இந்த அதித்ய ஹ்ருதயம் என்ற துதி மங்களங்களில் சிறந்தது, பாவங்களையும் கவலைகளையும்


குழப்பங்களையும் நீக்குவது, வாழ்நாளை நீட்டிப்பது, மிகவும் சிறந்தது. இதயத்தில் வசிக்கும் பகவானுடைய அனுக்ரகத்தை அளிப்பதாகும்.
முழு ஸ்லோக லிங்க் பொருளுடன் இங்கே உள்ளது
https://t.co/Q3qm1TfPmk
சூரியன் உலக இயக்கத்திற்கு மிக முக்கியமானவர். சூரிய சக்தியால்தான் ஜீவராசிகள், பயிர்கள்