Reliance Industries Receives SEBI Administrative Warning

Reliance Industries has received an administrative warning from the Securities and Exchange Board of India (SEBI). The regulator found that two employees and an immediate relative of one employee traded in the company's shares while they possessed unpublished price-sensitive information (UPSI).

The warning was addressed to the company's secretary and compliance officer. The letter was dated 24 June and was received from the National Stock Exchange (NSE) on 6 July. Reliance informed the stock exchanges about the matter on the same day.

The company clarified that the warning is precautionary in nature. It does not impose any financial penalty or operational restriction on Reliance.

SEBI Investigation

SEBI investigated trading activity in Reliance Industries’ shares between 1 June 2024 and 30 August 2024. The investigation examined whether the company had complied with the SEBI (Prohibition of Insider Trading) Regulations, 2015.

During the investigation, the regulator found that three connected individuals, or their immediate relatives, had traded in Reliance shares while in possession of unpublished price-sensitive information.

Individuals Identified And Trade Details

In the annexure to its letter, SEBI identified the individuals as Harsh Jain, Kamini Jain and Hirai Umang Doshi.

According to the regulator:

• Harsh Jain purchased two Reliance shares on 5 July 2024 for ₹6,385.

• Kamini Jain, identified as an immediate relative of a connected person, sold 35 shares on 10 July for ₹1,09,695.25. She later purchased 25 shares on 11 July for ₹78,871.25.

• Hirai Umang Doshi sold 15 shares on 18 July for ₹47,625.

Regulatory Findings

SEBI concluded that these transactions breached Regulation 4(1) of the Insider Trading Regulations. They also violated Sections 12A(d) and 12A(e) of the SEBI Act.

The regulator further stated that Reliance became aware of these trades only after receiving a communication from SEBI.

Warning To The Compliance Officer

SEBI said it viewed the compliance lapse seriously. The regulator issued an administrative warning to the company's compliance officer for failing to meet the required regulatory standards.

The letter advised the official to exercise greater caution in the future. It also called for stronger compliance measures to prevent similar incidents. SEBI warned that any future lapses could result in action under the SEBI Act and other applicable regulations.

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Company's Response

Reliance said it will take the necessary steps to address the regulator's concerns. The company did not say whether it would take any action against the employees or related individuals named in the letter.