A Dubai-based private investor has been fined a record $9.6 million for manipulating the securities of Indian refining giant Reliance Industries on the London Stock Exchange as the UK regulator stretches overseas to curb market abuse. Britain's Financial Services Authority (FSA) said on Wednesday it had slapped the penalty on Rameshkumar Goenka for artificially inflating the closing price of Reliance GDRs in 2010 to avoid crystallising losses on a structured product.
The fine is more than twice the size of the FSA's previous record penalty on an individual - a 2.8 million pounds ($4.5 million) fine on former broker Simon Eagle for market abuse last year - as it was calculated under a new penalty regime. Goenka was attempting to avoid a $3.1 million loss on an over-the-counter structured product that matured on October 18, 2010. The pay-out was dependent on the Reliance closing price on that day.
Comments
Comments are closed for this article.