Anil Ambani’s RCom owns a country-wide fibre optic network originally built by Mukesh Ambani, which would prove to be crucial for the upcoming 4G network of the elder sibling
Mukesh Ambani's Reliance Jio Infocomm (RJio) has signed a definitive agreement by paying Rs1,200 crore as a fee to Anil Ambani's Reliance Communications (RCom) for using its inter-city fibre optic network. The irony is, the senior sibling built the fibre optic network when Reliance was a single entity, and now he has to pay fee for using the same network because he has the license but no infrastructure for 4G. On the other hand, the younger brother has infrastructure, but no license for 4G.
As per the agreement, RJio would use RCom's multiple fibre pairs spread over 1.2 lakh km across the country for providing backbone to roll out its 4G services. “RCom will in turn have reciprocal access to optic fibre infrastructure to be built by RJio in the future,” RCom said in a release. RJio would pay about Rs1,200 crore to RCom as one time indefeasible right to use (IRU) fees for sharing the fibre optic network.
Telecom has always been a sector close to the heart of the Reliance Industries’ (RIL) chairman and managing director, Mukesh Ambani, who is known for his quick execution of mega projects, launched his ‘dream’ mobile services in 2003-04 with a slogan “Kar Lo Duniya Muththi Mein” (take control of the world). However, he had to give up Reliance Infocomm (which later became RCom) to Anil Ambani in 2005 when the Reliance empire was split.
Later in 2010, Mukesh Ambani-led RIL re-entered the telecom arena with a bang, announcing the acquisition of Infotel Broadband Services Pvt Ltd, which had emerged as the sole winner of pan-India broadband spectrum, for Rs4,800 crore.
Coming back to RCom, the company is striving hard to reduce the debt level in its books and has maintained its stance of selling stake in its tower assets, which might help in deleveraging the balance sheet and reducing debt. According to reports, RCom has debt of over Rs37,000 crore.
Last month, the Anil Ambani group company made yet another attempt to reduce its debt. In a regulatory filing, RCom, said it was in talks with Bahrain Telecommunications Co (Batelco) to sell stake in Reliance Globalcom, its enterprise business unit.
In 2012, RCom had also withdrawn its $1-billion initial public offering (IPO) plans for its submarine cable unit Flag Telecom, citing unfavourable market conditions.
Last year in June, Canadian research firm Veritas, in a report alleged that RCom was entering a phase of maximum uncertainty. The report further stated that fractured policy-making, high inflation, an uncontrollable fiscal deficit and the highly competitive telecommunications sector, were all working against RCom.
The CIC directed the PIO to file a police complaint and give a copy of the complaint and certificate from the additional commissioner certifying that this file with the demand draft has been stolen or lost. This is the 68th in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application
The Central Information Commission (CIC), while allowing an appeal directed the Public Information Officer (PIO) and executive engineer of Municipal Corporation of Delhi (MCD) to provide information, including copy of police complaint, statements and certificate from the additional commissioner (engineering) about the stolen or lost file.
While giving this important judgement on 6 October 2009, Shailesh Gandhi, the then Central Information Commissioner said, “The PIO will give the information consisting of the police complaint, statement of JE/AE and a certificate from the additional commissioner (engineering) as described above to the appellant and the Commission before 25 October 2009.”
New Delhi resident Satya Prakash Bagaria, on 20 December 2008, sought information under the Right to Information (RTI) Act from the executive engineer of MCD. He sought information about his payment of security amount for laying telecom ducts, which was given to his company by Tata Teleservices. Here is the information she sought and the reply provided by the PIO...
A. Reason for non-refund of security deposit.
PIO's Reply: The question was in the form of query.
B. Reason for harassment of the appellant.
PIO's Reply: As above.
C. Details of proposed actions which was to be taken by MCD against its errant officials with date.
PIO's Reply: As above.
D. Request to fix date and time to refund the security amount with interest thereon from the date of request for refund of the same was made.
PIO's Reply: The appellant is requested to contact the office any working day between 4.00 pm and 5.00 pm to sort out the issue. The office address for the had been given i.e O/o Ex. Engineer (M)-I, Municipal Corporation of Delhi, Arjun Marg, Defence Colony, New Delhi - 110024.
E. Name and designation posts of all the MCD employees who were responsible and accountable in the matter of the refund of the security deposit.
PIO's Reply: The refund of bank guarantee deposited was dealt by the concerned JE/AE of the area.
Bagaria citing non-receipt of complete information from the PIO, then filed his first appeal. The First Appellate Authority (FAA), in his order, directed the PIO to give information related with query no D within one month.
Despite directions from the FAA, Bagaria claimed that the PIO provided evasive and misleading information. He then approached the CIC with his second appeal.
During a hearing before the Commission, the PIO stated that the file relating to this matter had been stolen or lost and hence he was unable to give any information.
Mr Gandhi, the then CIC, noted that Bagaria had given a demand draft of Rs98,175 to MCD, out of which Rs46,750 was given as refundable security deposit. Bagaria was not refunded the deposit and therefore sought information regarding it through the RTI.
The PIO claimed that the entire file and the draft of Rs98,175 appeared to have been stolen/ lost and therefore MCD was not refunding Rs46,750 to the appellant (Bagaria).
Mr Gandhi then directed the PIO to file a police complaint for theft/loss of the said file with the demand draft mentioning the names of the officers who handled the file before 20 October 2009. “The PIO will also obtain a certificate from additional commissioner (engineering) certifying that this file with the draft has been stolen/lost. The PIO will also obtain a statement about this from the JE/AE. The PIO will also certify that the draft has not been enchased by the MCD,” the CIC said.
There was one more complaint registered before the Commission which was related to the same matter. Bagaria filed his second appeal on 13 August 2009.
The Commission noted that the receipt for the RTI fees was made in the name of Shyam Bhatnagar and the PIO sent a reply by speed post on 27 January 2009. In view of this no penal proceeding were initiated, the CIC said.
While allowing the appeal, Mr Gandhi, directed the PIO to give information consisting of the police complaint, statement of JE/AE and a certificate from the additional commissioner (engineering) to Bagaria before 25 October 2009.
CENTRAL INFORMATION COMMISSION
Decision No. CIC/SG/A/2009/001979/5031
Appeal No. CIC/SG/A/2009/001979
Appellant : Satya Prakash Bagaria
New Delhi - 110019
Respondent : SC Yadav
APIO & Executive Engineer
Municipal Corporation of Delhi
O/o the Executive Engineer (M)-I
Central Zone, Lajpat Nagar, New Delhi
The Bombay Stock Exchange has identified those stocks which are illiquid as per SEBI’s new definition and will move them to a separate trading window which will begin from 8th April. Some well known companies are also in the list
Acting on a recent directive from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), vide notice 20130401-39, has shortlisted all the ‘illiquid’ stocks and moved them to a separate window which will be traded from 8 April 2013.
The number of such stocks is 2,050 and represents over 50% of the ‘actively’ traded stocks on BSE! Some of the illiquid stocks which maybe familiar to investors include Dr Agarwals Eye Hospital, Asit C Mehta Financial Services, SKP Securities, Almondz Global Securities, Lumax Automotive Systems, Allsec Technologies, Bannari Amman Spinning Mills, Indus Fila, Rane Brake Lining, Rane Engine Valve, Ginni Filaments and Khaitan (India).
As per our analysis on the BSE website, the total number of stocks on BSE is 6,922. Out of this, only 3,888 stocks (including ETFs and such) are ‘active’, while 1,312 stocks are suspended and 1,722 stocks are delisted. The number of so called ‘active’ stocks is little over 50% of the BSE’s entire universe. This means, only 1,838 or just 26.55% of the entire BSE universe will be remaining and actively traded in the ‘normal’ segment of the exchange, if the illiquid stocks are moved to a separate window.
The implications of this move could be far reaching. This will further reduce the number of stocks traded on the exchange, making it difficult for investors to invest in niche or specialised companies (which are normally illiquid).
We had written about this in an earlier post. You can read about it here: Curbing manipulation in illiquid stocks: Another harebrained idea by SEBI?
The illiquid stocks which have been shortlisted will be moved to the “periodic call auction” window from 8 April 2013 onwards, where marketmen can trade on such stocks. The liquidity situation will be monitored by the exchanges every quarter. Every quarter, the exchange will review liquidity and add or remove stocks from the normal segment to the so called “periodic call auction” window where illiquid stocks are traded.
These stocks which are part of the 2,050 illiquid stocks, according to BSE, have failed to meet SEBI’s criteria for meeting definitions of liquidity for the quarter ended March 2013. As per SEBI circular no. CIR/MRD/DP/6/2013 dated 14 February 2013, a scrip is shortlisted as illiquid if all the following conditions are met:
The entire list of 2,050 stocks can be found here: (click here)