Learning
Get the Big Picture Right
It is not very difficult to pick a winning business to pick the right...
Premium Content
Monthly Digital Access

Subscribe

Already A Subscriber?
Login
Yearly Digital+Print Access

Subscribe

Moneylife Magazine Subscriber or MSSN member?
Login

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
Dr Swamy questions SEBI's role in SpiceJet deal
How could SEBI suo Motu inform the Ministry of Civil Aviation that SpiceJet share sale need not first be offered to existing shareholders and that Ajai Singh could acquire 58% or more of the total equity of SpiceJet at an undisclosed price, Dr Swamy said
 
Dr Subramanian Swamy, the leader from Bharatiya Janata Party (BJP), has again requested Prime Minister Narendra Modi to urgently conduct an enquiry by the Prime Minister's Office (PMO) in the SpiceJet Airlines deal with inputs from Enforcement Directorate (ED), Intelligence Bureau (IB) and Research and Analysis Wing (RAW).
 
Based on fresh information, Dr Swamy, in a letter, said, " On what authority did the SEBI suo Motu inform the Ministry of Civil Aviation that the sale of shares of SpiceJet need not first be offered to existing shareholders and that Mr Ajai Singh could acquire 58% or more of the total equity of SpiceJet at an undisclosed price."
 
“What were the considerations, if any, whereby the Ministry of Civil Aviation (MCA) remained mute when Mr Ajai Singh inducted about Rs1,300 crore or there about into the running of the said Airline (in view of his existing financial difficulty). Did the Ministry under-write this loan by any of the financial institutions. If so, why?" he asked.
 
Dr Swamy further asked, "How Goldman Sachs could be asked to evaluate the net worth of SpiceJet Airlines when many of the Indian agencies with no foreign connection are able to do as professional an analysis. And on what basis did Goldman Sachs declared that the share price of SpiceJet were near zero i.e. that these were dud shares? In fact, the valuation of a public limited company like SpiceJet ought to have been made public under the provisions of Company Law."
 
"In my view, the PMO should therefore immediately constitute a comprehensive enquiry before the SpiceJet sale snowballs into a major controversy. Needless to add that the Government of India has always had the option to nationalise the SpiceJet in the event of concern is for the passenger traffic and the employment of the staff in failing SpiceJet," Dr Swamy had said in the letter.
 
Earlier this year, Singh and others bought about 59% stake in SpiceJet from the Maran brothers. 
 

User

COMMENTS

Mahesh Bhat

2 years ago

It was political deal between DMK & BJP than between Ajay Sing & Maran brothers. BJP Govt bailed out Spicejet. Dr Swamy knows exactly what happened, hence he is asking for nationalizing Spicejet!

integrity

2 years ago

Great. Swamy has always been impressive. It would have been very interesting if he had decided to focus on lingering Sahara case and its implications

Nifty, Sensex to rally higher; Bank Nifty struggling – Monday closing report
Nifty is headed for few more days of gains
 
We had mentioned in last week report that Nifty is under pressure and it may rally if it manages to lose above 8,300. The index opened higher and immediately hit the day’s low. Each time during the session today the index hit a higher low and finally closed in the green after hitting the day’s high.
 
Sensex opened at 27,205, while Nifty opened at 8,230. Sensex moved from the low of 27,159 to the high of 27,538 and closed at 27,491 (up 479 points or 1.77%) while Nifty reached up to 8,346 after hitting a low of 8,220 and closed at 8,332 (up 150 points or 1.84%). Bank Nifty moved in range for most of the session except for the major dip that happened at around 2.22 pm. Bank Nifty opened at 18,418 and moved from the high of 18,586 to the low of 18,351 and closed at 18,501 (up 163 points or 0.89%). NSE recorded a volume of 67.91 crore shares. India VIX rose 0.48% to close at 17.3075.
 
The finance minister Arun Jaitley on Thursday moved amendments to Finance Bill 2015 in Lok Sabha to exempt foreign investors' capital gains from the sale of securities, interest income, royalty and fees for technical services from applicability of minimum alternate tax (MAT).
 
Data released by the government after trading hours on Thursday showed the Eight Core Industries carrying nearly 38% weight in the Index of Industrial Production (IIP) have recorded 0.1% drop in March 2015 over March 2014.
 
Finance Minister Arun Jaitley clarified that gains and losses arising out of exchange of shares with the units of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have been exempted from applicability of MAT.
 
The headline HSBC India Purchasing Managers' Index (PMI) declined to 51.3 in April from 52.1 in March. Manufacturing output, total new orders and buying levels expanded at slower rates in April 2015.
 
Gold imports surged 19.5% to reach USD 34.32 billion in 2014-15 due to declining prices and easing of restrictions by the Reserve Bank. Imports of the metal were USD 28.7 billion the previous fiscal, 2013-14.
 
According to a report mutual funds have brought in over Rs7,600 crore in equity markets in April, making it their highest net inflow in more than seven years.
 
The government recently increased the import duty on natural rubber to 25% which according to them has led to worsening of inverted duty structure since tyres and other finished rubber goods can be imported at 10% and even lower rate of duty.
 
Aditya Birla Nuvo rose 12.59% to close at 1,768.00 on the BSE. It was the top gainer in ‘A’ group after Madura Garments and Pantaloons Fashion got merged.
 
Shriram Transport Finance fell 14.93% to close at Rs828.20 on the BSE. It was the top loser in the ‘A’ group on the BSE, following poor March quarter results.
 
The government announced a steep hike in petrol and diesel prices after market hours on Thursday. As a result ONGC rose 7.57% to close at Rs327.65 on the BSE. It was the top gainer in the Sensex 30 pack.
 
ICICI Bank fell 0.63% to close at Rs329.15 on the BSE. The stock was the top loser in the Sensex 30 stock.
 
On Friday, US indices rebounded sharply after falling on Thursday. US Federal Reserve has left open the chance of an interest-rate hike as early as June in a statement following a two-day monetary policy meeting.
 
Among economic data in US, construction spending fell in March to a six-month low, while ISM data showed manufacturing growth held at its slowest in almost two years in April. A jump in consumer sentiment in April, however, and stronger-than-expected vehicle sales for the month suggested the economy was finding some footing.
 
Asian indices which were trading today showed mixed performance. Jakarta Composite (1.08%) was the top gainer while NZSE 50 (0.52%) was the top loser.
 
China's manufacturing sector in April turned in its weakest performance in a year, according to a private gauge of the country's factory activity, suggesting that Beijing may need to speed up its efforts to boost the economy. The private-sector HSBC manufacturing Purchasing Managers Index fell to a final reading of 48.9 in April from 49.6 in March, HSBC Holdings PLC said today, 4 May 2015. It was the lowest level since April 2014 when the reading came in at 48.1--well below the 50 level that separates expansion from contraction.
 
European indices were trading higher. US Futures too were trading in the green. Markit Economics said growth of the eurozone manufacturing sector was maintained in April, with the rate of expansion easing only slightly from March's ten-month high. Eurozone Manufacturing PMI came in a tick higher than its earlier flash estimate of 51.9. The PMI has remained in expansionary territory for 22 months.
 
Markit Economics said today, 4 May 2015, the seasonally adjusted final Markit/BME Germany Manufacturing Purchasing Managers' Index (PMI)–a single-figure snapshot of the performance of the manufacturing economy-fell from March's 11-month high of 52.8 to 52.1 in April
 
The headline Markit France Manufacturing Purchasing Managers' Index (PMI)–a seasonally adjusted index designed to measure the performance of the manufacturing economy–posted 48. Down from 48.8 in March, the latest reading pointed to an acceleration in the rate of deterioration.
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Close

To continue


Please
Sign Up or Sign In
with

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)