Stocks
4.63 lakh investors to get their money lost in IPO irregularities
The Securities and Exchange Board of India (SEBI) on Thursday said it has begun the distribution, to 4.63 lakh investors, of disgorged amount from initial public offering (IPO) irregularities.
 
The market regulator, in a statement, said: "An amount of Rs.18.06 crore, which includes Rs.7.35 crore recovered by SEBI in exercise of the newly conferred recovery powers under the Securities Laws (Amendment) Act, 2014, would be distributed to the 4.63 lakh eligible investors across the country on December 18, 2015."
 
According SEBI, wherever the bank details of the eligible investors are available, the amount would be credited in the said account and investors will be intimated.
 
"In the cases where bank details are not available, the cheques would be sent to the last known address of the investors. The list of eligible investors along with amount credited /sent by SEBI will be available on SEBI website www.sebi.gov.in."
 
According to SEBI, in the second tranche of distribution, 202,763 investors would be paid full eligible amount and the remaining 260,531 investors would be paid in part.
 
SEBI is continuing its recovery process by identifying assets of the defaulters, etc. for recovering and distributing the same to the remaining investors.
 
The investor who has received credit intimation and has not received the credit in his/her bank account and any queries relating to payment, revalidation, modification and others shall be taken on or before May 31, 2016.
 
Investors may approach the office of the facilitator registrar - TSR Darashaw Limited Unit SEBI-IPO Reallocation - Tranche -2 at 6-10, Haji Moosa Patrawala Industrial Estate, 20 Dr. E Moses Road, Mahalaxmi, Mumbai - 400 011 ([email protected] ) or Recovery Division, SEBI Bhavan, Bandra Kurla Complex, Bandra (East), Mumbai-400051 (email:[email protected]).
 
SEBI had investigated into certain irregularities in the shares issued through 21 IPOs during the period of 2003-2005 before their listing on the stock exchanges.
 
Upon completion of the investigations, SEBI had, inter alia, directed certain people to disgorge the illegal gains.
 
Under the chairmanship of Supreme Court's former judge, Justice D.P. Wadhwa, a committee was set up to recommend the procedure of identification of people who have been deprived in the said IPOs and the manner in which reallocation of shares to such investors should take place.
 
As per the recommendations of Wadhwa Committee, 12.75 lakh people had been identified as eligible investors for distribution. SEBI has already distributed Rs.23.28 crore to 12.75 lakh investors in April 2010, out of which 7.99 lakh investors were paid the full eligible amounts, it said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Committee set up to protect ONGC interest in RIL gas dispute: Pradhan
Petroleum Minister Dharmendra Pradhan on Thursday said a committee under Law Commission chairman A.P.Shah, has been set up to recommend compensation to ONGC to protect the government interest following American consultant's report on its natural gas from its Bay of Bengal block migrating to adjoining fields of Reliance Industries (RIL).
 
"We received the report of D&M (DeGolyer and MacNaughton) on November 30 and we saw it on December 1. D&M report has talked about some technical things like flowing of gas from ONGC's blocks to adjacent Reliance block," Pradhan told reporters here.
 
He said the Shah panel has been constituted "to understand the financial implications and to protect the interest of the government and government companies".
 
"We will protect government and PSU interest," he added.
 
The committee's terms of reference include, to "quantify the unfair enrichment, if any, to the contractors of the adjacent block KG-DWN-98/3 (KG-D6) and measures to prevent future unfair enrichment to these contractors on account of gas migration".
 
The D&M report says 11.122 billion cubic meters (bcm) of ONGC gas has migrated from Godavari Producing Mining Lease PML and KG-DWN-98/2 (KG-D5) in Krishna Godavari basin to Dhirubhai-1 and 3 (D1 & D3) field located in the KG-DWN-98/3 (KG-D6) block of RIL, as the reservoirs in question are connected.
 
The one-man committee will submit its report in three months on "how to compensate the losses keeping in mind the legal and business aspects".
 
Pradhan said the panel has been asked to report any "acts of omission and commission" on the part of all stakeholders including RIL, ONGC, the Directorate General of Hydrocarbons and the government.
 
"This will also give us a chance to analyse all those who are responsible for this kind of disorder. The government will act after the commission submits the report in three months," he said.
 
It says that of the 58.68 bcm of gas produced from KG-D6 block since April 1, 2009, 49.69 bcm belongs to RIL and 8.981 bcm could have come from the ONGC's side
 
At gas price of $4.2 per million British thermal unit, the volume of gas belonging to ONGC which RIL has produced comes out to worth $1.7 billion (Rs.11,055 crore).
 
ONGC had moved the high court here alleging that RIL extracted gas upto 18 billion cubic meters (bcm) from ONGC blocks, resulting in loss of several thousand crores of rupees.
 
In October, RIL had said it has "scrupulously followed every aspect of the production sharing contract and has confined its petroleum operations within the KG-D6 Block".
 
It said all its wells were drilled "strictly within the KG-D6 block boundaries, as per the Development Plan approved by the relevant authorities under the PSC (production sharing contract)".
 
D&M was jointly appointed by ONGC and RIL to investigate and submit a report on the matter.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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