What does this Sebi order actually mean for RIL as well as for Mukesh Ambani?
The market-cap of Reliance at that time was less than Rs 50,000 crore and now when you are coming out with an injunction its market cap is Rs 15 lakh crore. So it will be a standard news which will be digested and markets will move on with the bullish momentum. But it highlights during that period the derivative market froze and there was a huge loss for the traders in that segment because the markets were not that much regulated. There was a huge collateral damage which was caused and the company’s image had also taken a hit. I think now lot of water has flown under the bridge and Reliance has generated huge market cap and wealth. So I think it will be just a headline number which will flow over the next few days.
Looking at the way RIL has been fined by Sebi, do you see the company going ahead and challenging this order?
See, anybody who knows the market knows that this was what actually happened. Now there are ways to cover up through legal processes. In the end, market is all about profit and loss and the traders are not going to get back their lost money. If you recall, 2007-09 was a horrible period for the end investor because he lost confidence in the market due to the sharp volatility. It also got compounded with the global financial crisis. So all of that put together left a sour taste in the mouth. It is a very-very long order. It should have been more transparent which is now how the process is . I feel investors should not be hurt in any way because in the end it is them who generate participation and the flows.