The UK’s Financial Services Authority has imposed its largest-ever fine on an individual – US$9.6 million for manipulating the closing price of Reliance Industries securities on the London Stock Exchange.

Date: Dec 8, 2011

Tags: UK, Enforcement

The UK’s Financial Services Authority (FSA) has imposed its largest-ever fine on an individual – US$9.6 million for manipulating the closing price of Reliance Industries securities on the London Stock Exchange (LSE).

The regulator said that Rameshkumar Goenka, a Dubai-based private investor, placed orders and executed trades which artificially-inflated the closing price of the Reliance securities on 18 October 2010.

The investor held an over-the-counter structured product which matured on that day, and for which the payout depended on the closing price of Reliance securities. Goenka avoided a loss of US$3,103,640 under the terms of the product. The bank which was the counterparty, overpaid Goenka $3,103,640 as a result of Reliance’s closing price, said the FSA.

More details: http://www.fsa.gov.uk/pages/Library/Communication/PR/2011/094.shtml