Insider trading probe into Reliance Industries over, says Sebi

Mumbai: Sebi on Tuesday informed the Securities Appellate Tribunal that the regulator has completed investigation into allegations of insider trading by the Reliance group in L&T shares immediately before it sold its stake to Grasim Industries.

Mr Rafiq Dada, counsel for Sebi, said the probe had been completed last month and submitted to the regulator's legal department. Mr Dada mentioned it in the course of arguing why Grasim should not be allowed to go ahead with its open offer for L&T shares. He said the outcome of the probe could have a bearing on the present case.

Grasim had gained entry into L&T in November 2001 by buying Reliance's 10.5 per cent stake and subsequently raised the holding to a little above 15 per cent. Following complaints from several investors, Sebi had launched a probe to ascertain whether Reliance had profited from confidential information immediately prior to its Rs 766-crore deal with the Birlas.