SC quashes SEBI order against Reliance in RPL trading case; orders ₹250 crore refund

In a major relief for Reliance Industries Limited (RIL), the Supreme Court of India on Friday, May 29, quashed a Securities and Exchange Board of India (SEBI) order alleging fraudulent and manipulative trades in shares of Reliance Petroleum Limited.

The apex court also set aside a 2020 order of the Securities Appellate Tribunal, which had upheld SEBI’s findings and the associated penalty.

Further, the Supreme Court directed the refund of ₹250 crore deposited by Reliance Industries in connection with the case.

The matter pertains to trades executed in 2007 in the cash and futures segments of Reliance Petroleum by 12 entities linked to Reliance Industries. SEBI had alleged that these transactions were fraudulent and manipulative.

The market regulator had ordered the disgorgement of ₹447 crore from Reliance Industries. However, with the Supreme Court setting aside the SEBI order, the disgorgement order no longer survives.

The ruling marks the end of a long-running dispute over the 2007 Reliance Petroleum trades, with the Supreme Court overturning both SEBI’s order and the SAT ruling that had affirmed it.

Shares of RIL were trading over 1% down at ₹1,336.70 as of 12.07 pm on Friday. The stock has fallen about 15% so far this year.