Indian regulator fines Reliance unit $2.28m for insider trading

MUMBAI (REUTERS) - India's stock market regulator has fined a unit of energy conglomerate Reliance Industries Ltd 110 million rupees (S$2.46 million) over a 2007 insider trading case.

The company, Reliance Petroinvestments Ltd, has 45 days to pay the fine, the Securities Exchange Board of India said in its ruling published late on Thursday.

The regulator said Reliance Petroinvestments made a profit of 38.3 million rupees through several trades between February and March 2007 that were based on inside information.

The trades preceded a major announcement about a dividend declaration and the merger of a group company.

The deals were financed through an interest-free loan by a wholly-owned unit of Reliance Industries, according to the order on the regulator's website (http: r.reuters.com/pex77t).

A Reliance Industries spokesman did not respond to telephone calls.