Source- Economic Times
Insider trading case: SEBI bars Reliance Industries from equity derivative trades in F&O for 1 year
In a landmark order, market regulator Securities and Exchange Board of India (SEBI) today barred Mukesh Ambani-led Reliance IndustriesBSE 0.95 % Ltd (RIL) and 12 others from trading in equity derivative Future & Options markets for 1 year.
SEBI has ordered RIL to pay Rs 447 crore along with an annual interest of 12 per cent since November 2007 (around Rs 500 crore) as fine within 45 days.
Finding guilty in a seven-year long insider trading case, SEBI said the company made unlawful gains of Rs 513 crore through fraudulent trading in the F&O space in the securities of RIL's erstwhile listed subsidiary Reliance PetroleumBSE 0.34 %.
SEBI has found 13 companies including RIL guilty in Reliance Petroleum (RPL) insider trading case and has issued show cause notices to all the companies.
The 12 other entities are Gujarat Petcoke and Petro Product supply, Aarthik Commercials, LPG Infrastructure India, Relpol Plastic Products, Fine Tech Commercials, Pipeline Infrastructure India, Motech software, Darshan Securities, Relogistics (India), Relogistics (Rajasthan), Vinamara Universal Traders and Dharti Investment and Holdings.
Replying on the issue, RIL said trades in RPL shares were genuine and were bonafide transactions.
The day when this thrust started - I knew that this thrust will die sooner or later & here it is news adding the spice. It is (W)- (X)-(Y) sequence - (X) had internal sharp wave-A & wave-B is triangle & current thrust is wave-C which has good chances to end at 1327 or close by if we get a bounce. A-B-C shall complete wave-(X)
At 1327- wave-C measures 38.2% of wave-A if you project wave-A distance from 1013 low where wave-e (circled) ended (assumption) or if wave-e ended at 930 then it measures 50% of wave-a distance at 1327 in larger Wave-X.
There is small confusion about wave-e (circled) ending at 930 or 1013 hence I have taken both scenario as mentioned above.
Next, Larger Wave-(Y) has started or will start & likely measures 61.8% of Larger Wave-(W) between 595-600 as the target zone.
I had the view of Triangle in my 1st analysis done in Oct2016- the only difference was leg from 465 to 1268 was taken part of triangle(as first leg within the triangle) but later realized that wave-(X) got divided into wave-A -then wave-B (as triangle) & current wave-C which excited everyone was the thrust.
So, euphoria got created - see what happens post euphoria.
But I was clear moving above 1145- it could have exploded so I was stressing a lot & infact I also warned that reliance shorts cannot be taken if it sustains above 1045 mark - all my previous analysis they talk in detail as I never forget to mention the ruin point where the case could go against me or confirmation point for taking the trade.
Reliance Industries through its written and oral submissions before Sebi referred to its actions as 'hedging' to justify its scheme.
"The strategy of 'hedging', put forward as a defence by Noticee No.1(RIL) is nothing but a mirage," Sebi member G Mahalingam said. "While Noticee No.1 (RIL) has sought to depict a strategy of hedging, when one takes a closer look at what was actually done or intended to be done, the facade of hedge wanes off and exposes the hidden motive or strategy.
I find that Noticee No. 1 was not genuinely hedging the risk but was aiming to reap huge speculative profits by cornering futures positions and playing a fraud on the general investors and the market. This would amount to a well-planned, fraudulent and manipulative trading scheme in terms of the SEBI (PFUTP) Regulations, 2003."
There could be support between 1190-1225 if holds then good we can expect bounce but if it trades more on downside even below 1190 then it could be a problem which can be procrastinated but cannot be eliminated completely.
Bounces above 1225 from 1233 so it indicates downside has not started & one more leg upside is pending.
Wow1- what a push from previous update at 1295
Had a sharp upside move from 1300 -last update on 31st March2017 to new high@1449.
We will continue this post once this upside leg is finished. Currently seems there is something left on upside till 1130-1145 is intact on the downside.
entirely my view i may be wrong.
I am taking 930 as end of wave e (circled) in wave B triangle . I believe wave (X) is a zigzag so C = 0.618 A OR = A or 1.618 A
Projecting from of A of (X) from end of B at 930 end of wave c and (X) could be
0.618 = 1434
1 = 1747
Historic high for Ril is 1657
I think the impluse in wave C of (X) is also not complete . It is in a sub wave 4 . At 38.2% retracement of subwave 3 of C of (X) wave 4 falls to 1209 and will also land at channel line .
From 1209 Fib cluster for wave 5 of C of (X) is at following levels
Equality with wave 1 = 1209 + 170 = 1379
0.382 from 1 - 3 would be 1363
So if the 1363-1379 range passes then we should look at the 0.618 ie 1434 as the end of the zig zag (X)
There has to be a sharp upward movement to that area of 1400 + before the collapse . This should also correspond with end wave B of an expanded flat in Nifty taking it to a new high. I think