Capital market regulator SEBI on Thursday slapped a subsidiary of Reliance Industries Ltd (RIL) with a fine of Rs 11 crore after finding it guilty of insider trading in the erstwhile Indian Petrochemicals Corp Ltd (IPCL) share deal case.

SEBI pointed out that Reliance Petro Investments Ltd (RPIL) had 46 per cent stake holding in IPCL, and thus it had access to information pertaining to IPCL's merge with RIL and about a dividend that IPCL was to announce. The market regulator added that RPIL used the sensitive information to trade in its shares, which resulting in a gain of Rs 3.82 crore for RIL.

The market regulator said in its order, "It may be concluded that by virtue of RPIL having control over IPCL. The company being in such a position it is unacceptable that it was not aware of such major/ important decisions of the company IPCL."

The SEBI order was based on RPIL's trades in IPCL that took place between February 27 and March 2 of 2007.

Earlier on 11 April, SEBI had turned down allegations of insider trading against RIL chairman Mukesh Ambani's close aide Manoj Modi and his wife Smita Modi, saying it couldn't establish the charges its probe into the IPCL case.

A spokesperson for RIL declined to comment on the SEBI order, saying the company would not comment before examining the order.