Aditya Swarup acts for successful appellant in landmark Supreme Court decision for securities futures litigation in India.

Aditya Swarup was part of the successful team for the appellant in Reliance Industries Limited v The Securities and Exchange Board of India.

In this landmark ruling, the Supreme Court of India granted relief to Reliance Industries Limited (RIL), setting aside The Securities and Exchange Board of India (SEBI)’s findings of fraud and a ₹447 crore (GBP 37.5 Million) disgorgement order. The Court has for the first time authoritatively examined the legality of hedging transactions in the context of futures trading, drawing an important distinction between legitimate risk management strategies and allegations of market manipulation.

The decision overturned a court ruling and an order by the markets regulator that alleged RIL had engaged in manipulative trading practices after a decision to sell a stake ​in its subsidiary, Reliance Petroleum Ltd (RPL). Ahead of the sale, RIL had entered ​into arrangements with 12 entities that took short positions in RPL futures contracts, with profits and losses from those trades ultimately accruing to the company.

In its 2017 order, SEBI ​ruled that the arrangement amounted to fraud and market manipulation as it ​circumvented position limits in derivatives, cornered the market and influenced settlement prices. It directed RIL ‌to ⁠repay ₹447 crore to investors.

RIL challenged the order before the Securities Appellate Tribunal in 2020, which upheld SEBI’s findings. However, in May 2026, the Supreme Court of India said that the Securities Appeal Tribunal “in its majority judgment, committed an egregious error” and held that a breach of position limits is a ​regulatory violation but does ​not by ⁠itself establish fraud. It said hedging is a legitimate risk-management tool and “there is no legal requirement to ensure a perfect hedge ​with a ⁠1:1 ratio”, adding that SEBI had failed to meet the higher burden of proof required to establish manipulation.

The court directed SEBI to refund ₹250 crore it had collected from the ​Mukesh Ambani-led company pending appeal, according to the order.

Aditya Swarup, led by Harish Salve, SA and KC (Blackstone Chambers), along with Ritin Rai (7KBW) acted for the successful appellant in what is a precedent-setting decision for securities regulation and derivatives litigation in India.

Read the judgment

Read the judgment here.

This landmark decision has been widely covered by the Indian media, including Bar and Bench (subscription required), Indian Express, and Reuters.

Find out more

Aditya Swarup is a Professional Associate at Outer Temple Chambers, specialising in high-value commercial disputes, including shareholder disputes, securities litigation, telecom and infrastructure disputes. He is currently acting for some of India’s leading corporates and Government entities, in domestic and international disputes and arbitrations exceeding ₹6,000 crores. 

To find out more, please contact our clerks on +44 (0)20 7353 6381 or clerks@outertemple.com.

News 3 Jun, 2026