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Reliance to consolidate consumer brands under New RCPL subsidiary
The company said that the spin-off is aimed at attracting investors beyond those backing its retail unit.
On June 25, the National Company Law Tribunal (NCLT) reportedly approved the internal restructuring process, under which RIL will transfer its consumer business from its retail arm into a direct subsidiary. Currently, its consumer goods fall under Reliance Retail Ltd (RRL), Reliance Retail Ventures Ltd (RRVL), and Reliance Consumer Products Ltd (RCPL).
"This is a large business by itself, requiring specialised and focused attention, expertise and different skill sets as compared to a retail business. This business also entails large capital investments on an ongoing basis and can attract a different set of investors," the company said in its request for approval, as quoted by Reuters.
The New RCPL will look after manufacturing, distribution, selling, and marketing consumer goods. It will also invest in subsidiaries and joint ventures related to this business, the NCLT filing said, as quoted by Bloomberg. RIL will hold an 83.56 per cent stake in the new entity, Reuters reported.
RRVL reported a 30.4 per cent year-on-year (y-o-y) rise in its net profit at ₹3,519 crore for the fourth quarter of the financial year 2024-25 (FY25). The firm's revenue from operations came in at ₹78,622 crore, up 16.3 per cent y-o-y, while its gross revenue from operations was up 15.7 per cent to ₹88,620 crore. Sequentially, its revenue from operations was down 1.2 per cent and its net profit was up 1.0 per cent.
Shares of RIL last traded at ₹1518.95 apiece on the BSE at the close of the markets on Thursday.
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Time of India
33 minutes ago
- Time of India
All in a day: Buy stocks, bet against them in options market, then cash out
Established in Aug 1999, The New York-headquartered Jane Street has offices across the world. In June 2025, one of its co-founders was alleged to have financed a coup to topple the govt in South Sudan. Tired of too many ads? go ad free now The person then said he was duped into funding the coup. Sam Bankman-Fried, once the poster boy of the crypto world and now a convicted fraudster, once worked at Jane St. What led to Sebi's actions? Four Jane St entities operated in India as registered foreign portfolio investors. The regulator banned the four entities from the market. Sebi also asked the entities to jointly disgorge illegal gains worth nearly Rs 4,850 crore. Sebi said Jane St had used two key strategies to manipulate the domestic stocks and futures & options (F&O) markets to make illegal gains over several years. How did Jane St manipulate stocks? One of the strategies was to aggressively buy Bank Nifty's constituent stocks and futures in the morning. At the same time, it would buy put options on the index. In the afternoon, it would sell stocks bought in the morning. This selling pushed up prices of options on Bank Nifty, which the fund had bought in the morning. Once put option prices rose, those were sold to make huge profits. The other strategy was concentrated selling or buying of Nifty index options in the last two hours of the expiry day to swing index levels to profit from such trades. So, what happens next? The fund has been asked to present its side of the case to Sebi within 21 days. Sebi is expected to expand the scope of its investigations into the trading operations of Jane St in India. The interim order focuses on the Jan 2023 to March 2025 period. The regulator is also expected to investigate if manipulative strategies were used in other indices and in BSE's segments.
Mint
44 minutes ago
- Mint
Street theatre: Sebi pins down Jane Street for manipulation
The market regulator on Friday barred four entities of US-headquartered Jane Street Group from accessing the securities market until they deposit alleged illegal gains into an escrow account, rattling shares of capital market-related companies and the broader financial services sector. In one of the biggest crackdowns in India's equity market, the Securities and Exchange Board of India (Sebi) ordered seizing ₹4,843 crore from the group, one of the most influential players in the global derivatives markets, citing prima facie evidence of index manipulation and fraudulent trading practices. The Sebi interim order also froze the bank and demat accounts of the four entities, and directed all custodians, banks, depositories, and registrar agents to block any transfers or redemptions involving the entities' assets without its approval. Fear factor Capital market-related stocks plunged on fears of a fall in volumes. Shares of BSE tanked 6.55% to ₹2,635.2 while Nuvama, a trading partner of Jane Street in India, dropped 11.2% to ₹7,310. Angel One, the third-largest retail broking house, plunged 5.9% to ₹2,776. Depository CDSL, a subsidiary of BSE, shed 2.3% to ₹1,762.5. Others like Motilal Oswal Financial Services and Aditya Birla Sun Life MF slipped by 1.3–1.6%. "Jane Street disputes the findings of the Sebi interim order and will further engage with the regulator. Jane Street is committed to operating in compliance with all regulations in the regions we operate around the world," the group said in a statement to Mint. The Sebi order cited what it describes as 'prima facie" evidence of two distinct but coordinated manipulation strategies: 'intraday index manipulation" (seen on 15 days) and 'extended marking the close" (seen on 3 days), particularly on index expiry days. A further instance of similar manipulation was recorded on 15 May 2025, in defiance of prior regulatory warnings. Index manipulation Sebi said Jane Street exploited expiry-day dynamics in index derivatives. It held large options positions early in the day—typically puts (bearish bets) or calls (bullish bets)—and then moved prices in the cash and futures markets to benefit its options book. On expiry mornings, it would push Bank Nifty up by aggressively buying constituent stocks and futures, only to reverse positions by midday to engineer a fall—boosting the value of its put options. Across all the 18 days identified by Sebi for investigation within the examination period, Jane Street earned ₹43,289 crore in index options and another ₹900 crore in stock options, while making losses of ₹7,208 crore in stock futures, ₹191 crore in index futures, and ₹288 crore in cash equity. The net profit earned by the group stood at ₹36,502 crore. On 17 January 2024, Sebi found that Jane Street earned ₹734.93 crore in options, while losing ₹61.6 crore in cash and futures—what Sebi calls the 'cost of manipulation." That day, Bank Nifty opened 3.2% lower, driven by poor earnings from HDFC Bank. Between 9:15 am and 11:47 am, Jane Street purchased ₹4,370 crore worth of Bank Nifty constituent stocks and futures. This pushed the index up, misleading the market. Then, it created ₹32,114.96 crore in bearish positions by buying puts and selling calls. After 11:49 am, it reversed its morning trades, sending the index into a tailspin and locking in massive profits. Directional trades In another strategy labelled 'extended marking the close", Jane Street was found to have made aggressive directional trades in the final 30-60 minutes of trading to engineer the index closing level. This was key since settlement prices for options are derived from the day's close. In a particularly serious instance, on 15 May, 2025—despite receiving a prior caution from the National Stock Exchange (NSE)—the same pattern re-emerged, this time on Nifty expiry. Sebi noted this was a "cynical violation of the caution letter issued to the JS Group on February 6, 2025." Forensic analysis The investigation, which began in April 2024 after foreign media reports flagged global litigation involving Jane Street's trading strategies, focused on derivatives expiry-day trades. Forensic analysis of timestamps, order placement vs. last traded price, and gross traded values revealed patterns closely tied to its options exposures. According to Sebi, this indicated a calculated design to manipulate index levels. Legal experts say the burden now shifts to Sebi to prove manipulative intent. 'Large, aggressive, or even dominant trading strategies are not per se unlawful unless they are deceptive or fraudulent. Sebi's case relies on patterns and price impact rather than direct evidence of deception, which could face scrutiny. This matter could set an important precedent for how Indian law treats complex algorithmic strategies in the derivatives market," said Sumit Agrawal, founder of Regstreet Law Advisors and a former Sebi official. Agarwal added that if contested, Jane Street could plausibly argue that its trades were part of legitimate algorithmic strategies used for hedging and liquidity provision, not manipulation. 'The trades were executed transparently through the exchange and may have caused market impact due to scale, but impact alone isn't unlawful under Indian securities law", he said. Major reset Jayesh H., co-founder of Juris Corp, added, 'While it can appear as one-off, that would be a mistake. If the preliminary assessment turns out to be correct, then there needs to be a major reset and on all sides... Going back in time, the recommendations of L.C. Gupta should be remembered… small retail investors [were] to be kept out." A Sebi official said on the condition of anonymity that the interim order is not a show cause notice, and it clearly indicates that investigations into Jane Street will continue. "This interim order has only looked at the 18 major days of prima facie Bank Nifty index manipulation on expiry day… Investigations into other expiry days, other indices (including across exchanges), and other potential patterns besides the two highlighted in the order will need to continue." There should not be any major market impact from this enforcement action, the official added. "In any case, delta-based (future equivalent) limits are now in place in index options to curtail excessive risk taking without impacting regular participants." Enforcement Better enforcement of existing regulations can pave the way for optimal regulation, the official said. 'On the flip side, more regulations cannot make up for poor enforcement. We will continue to monitor Indian F&O markets." The order, authored by Sebi whole-time member Ananth Narayan G, mandated Jane Street to close all open derivative options in three months. Exchanges have been asked to supervise the group's trading, which will commence after it deposits alleged illegal gains. Market experts appear to have mixed views on the implications of the Sebi action on the US trading firm. 'You've got to hand it to Sebi for going after Jane Street. If the allegations are true, it's blatant market manipulation," said Zerodha founder Nithin Kamath on X. He added, though, that prop trading firms like Jane Street accounted for nearly 50% of options trading volumes, and if they pulled back—which seems likely—retail activity of around 35% could take a hit. 'So this could be bad news for both exchanges and brokers," Kamath said. Higher volumes? However, a UAE-based trader active in Indian markets countered this view, saying volumes could actually rise. 'The impact of the Sebi clampdown on Jane Street's manipulation will only lead to an increase in volumes," said Mayank Bansal, president at a UAE-based hedge fund. 'Many traders stayed out of the Indian markets over the past 12 months, knowing that markets were being rigged massively by Jane Street on expiry day. Now that Jane Street has been barred… the volumes… will actually increase as traders staying out will come back in again."Jane Street is largely a market maker in other markets where it operates. Here, instead of providing two-way liquidity, it was taking large directional exposure via options, and then manipulating the underlying to benefit from them. NSE's premium turnover in index options—a key metric for active trading—averaged ₹47,836 crore per day in Q1 FY26. That's down 24% year-on-year from ₹63,208 crore, but up 10% from the previous quarter. The year-on-year fall is attributed to Sebi's tighter rules introduced late last year, which increased the cost to trade and limited weekly option expiries to one per exchange. BSE holds a little over 20% share of the options market.
Time of India
an hour ago
- Time of India
Tata Power plans to contest Rs 4k-cr Singapore arbitral order
MUMBAI: Tata Power, the utility arm of the Tata Group, plans to contest the $490 million (Rs 4,200 crore) verdict handed down by the Singapore arbitral tribunal. The ruling stems from alleged breaches of confidentiality agreements with investment firm Kleros Capital Partners concerning a potential coal mining project in Russia. At Tata Power's annual shareholder meeting on Friday, chairman N Chandrasekaran said: "The company is reviewing the contents of the July 1 arbitration award and is discussing with lawyers. It will look at all options, including challenging the decision." He emphasised, "This is top of the agenda." The Singapore International Arbitration Centre granted Kleros a monetary award totalling more than $618 million. This included $490 million in damages, alongside interest payments exceeding $120 million (calculated at 5.33% from Nov 30, 2020 - when the lawsuit commenced - until payment settlement), and $8 million in legal costs with interest (at 5.33% from July 1, 2025--when the verdict was issued-until final payment). Tata Power has not accounted for any provisions in its financial accounts in relation to the arbitral award. Since July 1, Tata Power stock has lost nearly 1.5%. On Friday, the stock on BSE closed at Rs 401. The Singapore arbitral tribunal held that Tata Power breached certain clauses of the non-disclosure agreements it had entered. However, in its FY25 report, the Indian company maintained that Kleros's case was an afterthought and therefore lacked merit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is your tinnitus getting worse? Do this immediately (Watch) Hearing Magazine Undo Also, Kleros failed to substantiate its project value claims concerning loss of opportunity and compensation negotiations. Consequently, Tata Power believed its position was strong and deemed it unnecessary to make provisions concerning the arbitration ruling, the FY25 report showed. In another dispute, Adaro International (Singapore) has sought damages of $106 million from Tata Power for alleged contractual breaches. Tata Power, in turn, has filed a counterclaim for $229 million for losses suffered due to non-supply of coal by Adaro. According to its FY25 report, Tata Power entered into a coal supply agreement with Adaro for its Trombay, Mumbai power plant, which required it to procure a certain quantity of coal annually. Both parties have initiated arbitration proceedings. Responding to shareholders' questions regarding ongoing litigation cases, Chandrasekaran said: "With regard to the other arbitration case, the company believes that it should definitely challenge that. That is something that is waiting for resolution." The company currently imports 15 million tonnes of coal yearly for its domestic thermal power operations. Interestingly, Tata Power is reassessing its thermal power strategy, four years after deciding to focus on green energy instead of expanding thermal power. Chandrasekaran said: "The company had declared that it will not expand in coal-based energy. However, this decision is being reviewed by the board due to the increasing demand for electricity in the country. The country may not be able to switch off all coal projects in the near future. It may take longer because the country's net zero target is 2070 whereas the company's target is 2045. So to meet the immediate demands of the industry, should there be a need to look at participation in additional coal-based projects is something that the board constantly looks at. " He indicated that the company has no intentions to convert its coal-based power plants to gas-based plants. "Our coal plants will be coming to the end of their life in the next 10 to 15 years. After that, we will slowly replace them with renewables". Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
