Reliance Industries drops 2% as Sebi bars firm to deal in F&O segment

Shares of Reliance Industries dropped nearly 2% in Monday’s trade after the Securities and Exchange Board of India (Sebi) barred Reliance Industries, and 12 other entities from dealing in futures and options (Fand O) segment for a period of one year, directly or indirectly, for allegedly indulging in fraudulent trades in Reliance Petroleum in 2007.Following the development, the stock declined 1.62% to hit a low of Rs 1265.35 on BSE. At this price, the stock was trading nearly 5% lower than its 52-week high of Rs 1,326.75 hit on March 7 this month.The capital markets regulator has also directed RIL to disgorge Rs 447.270000000 along with 12% interest from November 29, 2007 onwards till the date of payment, within 45 days from the date of the order.The company in a filing to BSE said that it was in consultation with legal advisors and would be looking to challenge the order in Securities Appellate Tribunal (SAT).Sebi has allowed RIL and the other entities to square off or close out their existing open positions. Reacting to the decision, Reliance said it plans to challenge the order in the Securities Appellate Tribunal. "Sebi appears to have misconstrued the true nature of the transactions and imposed unjustifiable sanctions,'' a Reliance spokesperson told ET in an emailed statement.