The company that may well be the most representative of India Inc in today's world, Reliance Industries, was served notice for insider trading by Securities an Exchange Board of India (Sebi) on Monday.
The case relates to a probe into the alleged accusations of insider trading in Reliance Petroleum shares in Novermber 2007 which caused the RPL stock to jump to its highest-ever point.
Reliance had sold some 4 per cent of the equity of RPL before the fact came to widespread notice fuelling the resultant surprise.
In effect, what the market regulator is asking Reliance to do is give its version of the situation. However, if ultimately the case was to take a turn for the worse, and it was pronounced guilty, the ramifications could be serious as they can involve a ban on trading of the scrip on bourses.
The controversy did not have an immediate impact on the share of Reliance. On Tuesday, the share closed flat at Rs 1,876.70. On Wednesday, the same thing repeated with an almost zero gain reported as the share closed the day at 1,877.15.