Sebi had alleged that Reliance Strategic Investments, along with Morgan Stanley France (MSF), had knowingly traded in the puts of strike price 11,400 PE at a discount of 15%, 35% and 37% to the intrinsic value of the put options on July 31, August 8, and August 10, 2017, respectively.
Terming the order passed by the Securities and Exchange Board of India (SEBI), imposing a penalty of Rs7 lakh on Jio Financial Services Ltd (erstwhile Reliance Strategic Investments Ltd), as erroneous and without any basis, the Securities Appellate Tribunal (SAT) quashed the order.
"To hold a simple one-way trade as manipulative when it is not a circular or reversal trade and in the absence of any shred of evidence of mutual arrangement with a motive to manipulate the market, the impugned order cannot be sustained and is quashed," the tribunal said in its 33-page order on Wednesday.
Get latest articles and stories on Latest News at LatestLY. The Securities Appellate Tribunal (SAT) on Wednesday quashed a Sebi order imposing a penalty of Rs 7 lakh on Jio Financial Services Ltd in case of alleged manipulation in certain trades in long-dated Nifty options in 2017. Latest News | SAT Quashes Sebi's Rs 7 Lakh Fine Against RIL's Subsidiary.
NEW DELHI: The Securities Appellate Tribunal (SAT) on Wednesday quashed a Sebi order imposing a penalty of Rs 7 lakh on Jio Financial Services in case.