Controversy over the sharp rise and fall in the stock price of Reliance Petroleum Ltd (RPL) refuses to die down even after the November contract in the derivatives segment expired on Thursday. It has now come to light that even before Reliance Industries Ltd, RPL’s promoter, sold over 4% in the company in two tranches between November 6-14 and November 15-23, a section of players offloaded close to 10 crore RPL shares.
The RPL counter saw a combined trading volume of 20.20 crore shares in the cash segment of the BSE and NSE on November 1 with an average delivery of 22.3%, resulting in deliverable volume of 4.50 crore shares.
Similarly, on November 2 and 5, the combined trading volume was 10.10 crore shares and 10.80 crore shares, respectively, with an average delivery of 18% and 31.60%. The deliverable volume was 1.8 crore shares and 3.4 crore shares. Thus, in these three sessions, 9.70 crore shares (over 2% of RPL’s equity) were sold on delivery basis. Such large volumes are a cause for suspicion, add experts.
That the selling was delivery-based can be established by the fact that the RPL stock price during this period fell from a lifetime high of Rs 295 on November 1, to close at Rs 267.55 on November 5, on the BSE. A dealer with the domestic brokerage said, “Whenever there is a huge quantity traded in any liquid counter and there is a fall in the market price, this definitely indicates that the most of the delivery-based trading is sales."
RIL later disclosed under various regulatory requirements that it had sold 11.4 crore RPL shares amounting to 2.54% of the equity between November 6 and 14 while it sold 6.6 crore shares (1.47% of RPL's equity) between November 15 and 23.
Source: Financialexpress.com
Tuesday, December 4, 2007
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