Reliance Industries Shares Under Pressure After Sebi Warning Over Insider Trading By Employees

Reliance Industries Ltd (RIL) shares were under pressure on July 7, 2026, after the company disclosed that the Securities and Exchange Board of India (Sebi) had issued an administrative warning to its Company Secretary and Compliance Officer over alleged insider trading by two employees and one immediate relative of an employee. Around 12:58 PM, the stock was trading at Rs 1,315.30, down by Rs 6, or 0.45 per cent from the previous close. During the session, it touched an intraday high of Rs 1,328 and a low of Rs 1,310.

In its exchange filing, Reliance said it received the communication from the National Stock Exchange (NSE) regarding Sebi's administrative warning. The warning pertains to trades carried out in July 2024, when “two employees and one immediate relative of an employee” allegedly traded in the company's shares while in possession of unpublished price-sensitive information (UPSI), according to the regulator.

What Happened

According to Sebi, the matter emerged from its investigation into trading in Reliance Industries shares between June 1, 2024, and August 30, 2024. During the probe, the market regulator found that three connected persons, or an immediate relative of one of them, had traded in the company's shares while allegedly in possession of UPSI.

As per Sebi's observations, the trades were carried out by Harsh Jain, Kamini Jain and Hirai Umang Doshi.

In its exchange filing, Reliance said it "will take necessary steps to address the concern mentioned in the Sebi letter."

The company, however, also emphasised that "Sebi's letter is cautionary in nature and does not impose any financial or operational restrictions on the Company."

According to Sebi's warning, the regulator viewed the alleged violation seriously and advised the Compliance Officer to strengthen compliance standards to prevent similar instances in future. It also cautioned that any recurrence could invite action under the Sebi Act and related regulations.

What Is Insider Trading

Sebi defines insider trading as dealing in securities while in possession of "unpublished price sensitive information" or communicating such information to enable others to trade.

Under Sebi's Insider Trading Regulations, employees, directors and designated persons are required to maintain the confidentiality of "price sensitive information" and are not allowed to pass it on to any person directly or indirectly by making a recommendation to buy or sell securities. To prevent misuse of “price-sensitive information,” listed companies close the trading window, during which designated employees and directors are not allowed to trade in the company's shares.

Trading based on such information gives an unfair advantage to insiders over other investors who do not have access to it.