RIL entity fined for alleged manipulation in options

The Securities and Exchange Board of India (Sebi) has fined Reliance Startegic Investments, part of Mukesh Ambani's Reliance Group, ₹7 lakh for alleged manipulation of trades done in long dated Nifty options in 2017.

The crux of Sebi's allegation against Reliance Strategic Investments is that Reliance along with Morgan Stanley France had knowingly traded in the puts of strike price 11400 PE at a discount of 15%, 35% and 37% to the intrinsic value of the put options on July 31, August 8 & 10, 2017, respectively.

The investigation period was from July 31, 2017 till contract expiry day i.e. December 28, 2017.


The regulator alleged that the trade was done on the basis of mutual arrangement. This amounted to active concealment of fair price of the option and resulted into manipulation of the price of the contract, which had the effect of potentially misleading investors with regard to likely future price of the underlying. It had, thereby, violated Sebi's Prohibition of Fraudulent and Unfair Trade Practices Regulations, said the regulator.