SEBI Rejects Settlement In Reliance Industries Ltd Dispute-Reuters

Reuters reported that the Securities and Exchange Board of India (SEBI) rejected Reliance Industries Ltd's (RIL) request to settle a long-pending dispute over the energy conglomerate's 2007 sale of stock futures in a unit, citing rule changes in late May that took a tougher stance on suspected violations. The dispute with Reliance stems from SEBI's investigation into suspected insider trading when the energy conglomerate sold stock futures of Reliance Petroleum before folding the unit into its operations. Reliance Industries has denied engaging in any insider trading in that transaction. SEBI amended its procedures for so-called consent applications, or requests for out-of-court settlements, in May 2012, effectively banning the use of monetary payments to resolve suspected cases of market rule violations, including insider trading. The regulatory changes followed criticism that consent orders were being inappropriately used by those under investigation to avoid potentially more damaging rulings by the regulator on wrongdoing.