A Lion’s eye on the Bulls and Bears

“In India, companies may fall sick, but promoters rarely do!”

Gaurav's Blog


Derivatives Strategies

Proof Of Insider Trading in RPL…Yet Blind Eye Turned by SEBI

Today’s Front Page of Business Standard carries detailed proof of how Several Companies connected to the Ambanis of Reliance Industries short sold 105.8 million shares of RPL in the Derivatives Segment with inside knowlege that RIL was to offload 4.01% stake in RPL and the price of RPL would crash…..Check it Out at


Entity name Quantity*
(in million shares)
(In Rs crores)
Aarthik Commercials Pvt Ltd 9.0 45
Fine Tech Commercials Pvt Ltd 9.0 32
Dharti Investment and Holdings Ltd 13.9 50
LPG Infrastructure India Pvt Ltd 9.0 45
Vinamra Universal Traders 16.5 45
Pipeline Infrastructure India Pvt Ltd 9.0 45
Gujarat Petcoke and Petroproduct
Supply Pvt Ltd
9.9 55
Relogistics (India) Pvt Ltd 8.0 9
Relpol Plastic Products (P) Ltd 13.0 44
Darshan Securities Pvt Ltd 8.5 31
Total 105.8 401
* rpl shares sold on nse f&o between Nov 1 and 6, 2007
** Profit made from short sales
Source: Letter written by Amar Singh to Sebi

The SEBI Chairman at the time ,Mr Damodaran did nothing about it though he was aware of this….Will the Current Chairman,C B Bhave investigate fairly and without bias ?….your guess is as good as mine….but I’ll tell you this….Watch out for Mukesh Ambani too firing a salvo at Anil Ambani….also if Amar Singh could have obtained such details it could have only been from the exchanges….why could not the Exchanges and SEBI have investigated at the time itself…It’s clear they did not want to

If you recollect that RIL sold over 4% of it’s stake in RPL in the open market in November 2007 from November 6 to November 23,2007….Check it out as below  


The High and Low registered by RPL’s Share Price on the BSE from November 6 to November 23,2007 was Rs 282 and Rs 197.50…If I recollect correctly RIL realised an average of over Rs 230 for the sale…Check it out below


The RIL Connected Entities short sold RPL in the first week of November 2007 before RIL began selling RPL in the open market….The Timing,the Connected Parties Involved,the subsequent Price Fall,the Scale of Short Selling….all point to a clear case of Insider Trading……SEBI goes after the small fish and leaves the Big Fish alone….was the short selling orchestrated from the Capital ?

Yesterday Supreme Court Judges helplessly screamed out ” Even God cannot save this Country !” in context of a case where Government Quarters were not being vacated and Government was not keen to amend the laws that Supreme Court had directed to do 

I had personally done a case study on another Insider Trading Circumstance at BSE and even emailed the matter to Damodaran,then Chairman of SEBI…..he or his office deleted it without even reading it !  

Hedge your Equity Portfolios this week…Critical Trust Vote on N-Deal on July 22,2008

On July 22,2008 if the UPA fails to win the trust vote on the Indo-US N-Deal in the Lok Sabha it will herald early general elections later this year and everything would then be on hold and you’ll see the Nifty and Sensex slide further…pretty quickly to.

If the UPA wins the trust vote by mustering atleast 272 votes ( looks a close possibility right now) there will be a bounce back and a sharp rally 

Good idea to hedge in your equity portfolios in the coming week,preferably by buying Nifty Puts to keep any upside open….Naked Positions should be only through safer strangle or straddle strategies unless you are a hardcore derivatives professional or a die hard addict of Derivatives…then you can carry on and gamble on going either Long or Short on Nifty Futures depending on what you assume will happen !

Cheers and Good Luck !

Scroll to Top