The Securities and Exchange Board of India or Sebi could levy a record penalty on Reliance Industries (RIL), the country’s largest private sector company, if it is able to establish that the company was involved in insider trading.The regulator can impose a penalty of Rs 25 crore or three times the amount of profit a company made from insider trading, whichever is higher.
RIL made a profit of about Rs 500 crore from the sale of Reliance Petroleum shares. The potential penalty could thus be Rs 1,500 crore. A high penalty is possible because of the magnitude of the profit.
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