India market regulator accuses Reliance Industries of fraud

March 25, 2017 - 4:43 am

NEW DELHI (AP) — India's markets regulator has barred Indian conglomerate Reliance Industries and 12 others from trading in equity derivatives for a year for allegedly fraudulent trades made 10 years ago.

The multibillion-dollar Reliance Industries on Friday rejected the ruling by the Securities and Exchange Board of India and said it would appeal the order.

The securities regulator says that the fraud is related to the 2007 sale of a 5 percent stake in subsidiary Reliance Petroleum when it was a separately listed company. The company used unlawful trade practices to profit from that sale.

The regulator says Reliance made about 5 billion rupees ($76 million) in profits from that and has asked it to give up nearly 4.5 billion rupees along with 12 percent interest within 45 days.

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