Synopsis
Sebi issued an administrative warning to Reliance Industries after finding two employees and a relative traded while possessing unpublished price-sensitive information. The regulator flagged compliance lapses, but imposed no financial or operational restrictions, with Reliance promising corrective measures to strengthen monitoring.
Reliance Industries has received an administrative warning from Sebi after the regulator found that two employees and one immediate relative of an employee had traded in the company’s shares while in possession of unpublished price sensitive information.
The warning was issued to the company secretary and compliance officer of Reliance. The letter, dated June 24, was received by the company from the National Stock Exchange on July 6. Reliance disclosed the matter to the stock exchanges the same day and said the warning was cautionary in nature. It added that the letter does not impose any financial or operational restrictions on the company.
Sebi conducted an investigation into trading in Reliance shares during the period from June 1, 2024, to August 30, 2024. The regulator said it examined compliance with provisions of the SEBI Prohibition of Insider Trading Regulations, 2015. During the investigation, SEBI observed that three connected persons, or their immediate relatives, had traded in Reliance shares while in possession of unpublished price sensitive information.
The regulator named Harsh Jain, Kamini Jain and Hirai Umang Doshi in the annexure to its letter. According to the trade details, Harsh Jain bought two Reliance shares on July 5, 2024, for Rs 6,385. Kamini Jain, described as an immediate relative of a connected person, sold 35 shares on July 10 for Rs 1,09,695.25 and bought 25 shares on July 11 for Rs 78,871.25. Hirai Umang Doshi sold 15 shares on July 18 for Rs 47,625.
Sebi said these trades violated Regulation 4(1) of the insider trading rules and Section 12A(d) and 12A(e) of the SEBI Act. The regulator also said Reliance took note of the trades only after receiving communication from the regulator.
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Sebi said the violation had been “viewed seriously” and warned the compliance officer for non-compliance with regulatory provisions. It also advised the official to be cautious in future and improve compliance standards to avoid a repeat. The regulator said failure to do so could lead to appropriate action under the SEBI Act and related rules and regulations.
Reliance said it will take necessary steps to address the concern mentioned in the Sebi letter. The company did not disclose any further action against the employees or related persons named in the letter.
The case underlines the scrutiny on trading by employees and connected persons at large listed companies, especially during periods when unpublished price sensitive information may exist. For listed companies, the matter also shows the importance of pre-clearance systems, trade monitoring and faster internal detection of violations before regulatory intervention.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
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