Supreme Court Clears Reliance Of Fraud Charge? SEBI’s ₹447 Crore Case Explained

Описание: SEBI alleged a ₹513 crore stock market game. Supreme Court said — suspicion is not proof.

In the 2007 Reliance Petroleum futures case, SEBI alleged that Reliance Industries used 12 entities to take large futures positions and later sold shares near settlement time to manipulate prices.

SEBI computed disgorgement at ₹447.27 crore with 12% interest. But the Supreme Court held that fraud and market manipulation were not proved. The Court set aside the disgorgement order and directed refund of the ₹250 crore deposited by Reliance Industries in the Investor Protection Fund under the Court’s interim order. However, the penalty for violation of position-limit disclosure requirements was upheld.

Key takeaway:
A big trade is not automatically fraud.
A regulatory breach is not automatically market manipulation.
Suspicion is not proof.

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