NEW DELHI/MUMBAI, May 29 -- In a relief for Reliance Industries Ltd (RIL), the Supreme Court on Friday set aside the market regulator Securities and Exchange Board of India's (Sebi) Rs.447.27-crore disgorgement order in the long-running Reliance Petroleum Ltd (RPL) derivatives trading case, marking a key turn in one of the most significant disputes in India's capital markets.

A bench comprising Justices J.B. Pardiwala and R. Mahadevan allowed Reliance's appeal and overturned a November 2020 majority ruling of the Securities Appellate Tribunal (SAT), which had upheld Sebi's findings of fraudulent and manipulative trading in RPL shares and derivatives in 2007.

The bench directed the refund of Rs.250 crore deposited by Reliance in the Inve...