While SEBI opposed RIL’s plea saying that it is up to the regulator to decide on acceptance or rejection of a consent application, SAT said it is seeking written submissions from both the parties as it is hearing such a case for the first time
The Securities Appellate Tribunal (SAT) on Monday while adjourning the hearing till 14th June on Reliance Industries’ (RIL) appeal against market regulator Securities and Exchange Board of India (SEBI) asked both the parties to make written submissions.
Mukesh Ambani-led RIL had approached SAT after its application to settle the matter through a “consent mechanism” was rejected by SEBI.
RIL has challenged SEBI’s decision to reject its plea and also the changes made by the regulator during 2012 in regulations governing settlement of cases through the consent mechanism, especially those already under consideration.
Under SEBI’s consent mechanism, companies can seek to settle cases with the market regulator after payment of certain charges and disgorgement of any ill-gotten gains.
RIL filed a petition before SAT against SEBI’s rejection of its application for “consent settlement” of a probe into alleged violation of insider trading norms in sale of shares of the company’s erstwhile subsidiary Reliance Petroleum.
In May 2012, SEBI had tightened the norms for settlement through consent framework. As a result, many cases, including those related to insider trading, are not being settled through this mechanism.
On 3 January 2012, SEBI published a list of 149 consent pleas, including 16 from entities related to the RIL group, which it had found unsuitable for settlement through consent process.
These include applications of RIL itself and that of RIL chairman Mukesh Ambani’s close aide Manoj Modi.
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