Moily said the government was also considering raising the cap on supply of LPG cylinders to nine per household in a year from current limit of six
New Delhi: Diesel, kerosene and LPG (cooking gas) prices may be hiked soon as the Indian government considers Vijay Kelkar Committee recommendations on cutting fiscal deficit, reports PTI.
The Kelkar Committee, which was appointed by Finance Ministry to suggest a roadmap for fiscal consolidation, has suggested immediate hike in fuel prices and complete deregulation of diesel prices by start of 2014-15 fiscal. It also suggested raising kerosene and LPG rates.
"That (Vijay Kelkar committee recommendation on deregulating diesel and raising kerosene and LPG rates) is a proposal. It is still at proposal stage. The (Petroleum) Ministry is only processing that report and we are yet to take a decision," Oil Minister M Veerappa Moily told reporters.
The panel had in September recommended "immediate increase in Petroleum prices. This should be continued in the next year in such a way that the prices of diesel are fully deregulated by the start of 2014-15. The prices of kerosene and LPG also should be revised regularly to keep the subsidy levels at affordable levels."
Price of diesel, which currently costs Rs47.15 per litre in Delhi, was last revised on 14th September when it was hiked by a steep Rs5.63 per litre. Kerosene rates have not changed since June 2011 and it currently costs Rs14.79 per litre in Delhi.
State-owned oil companies currently sell diesel at a loss of Rs10.16 per litre, kerosene at Rs32.17 a litre and LPG at Rs490.50 per 14.2-kg cylinder.
Moily said the government was also considering raising the cap on supply of subsidised cooking gas (LPG) cylinders to 9 per household in a year from current limit of six.
In the case involving sale of shares of Reliance Petroleum, SEBI is said to have been investigating for a long time the alleged violation of insider trading regulations by RIL
Mumbai: Reliance Industries Ltd (RIL) has approached the Securities Appellate Tribunal (SAT) against market regulator Securities and Exchange Board of India (SEBI) which has issued show-cause notices to the corporate giant with regard to certain alleged irregularities in its share dealings, reports PTI.
RIL's appeal against SEBI was earlier scheduled by SAT for admission on Friday, but the Tribunal has adjourned the hearing to 11th January.
While details of RIL's appeal before the SAT could not be immediately obtained, SEBI has previously issued show-cause notices to the company in cases involving sale of shares of its erstwhile subsidiary Reliance Petroleum Ltd (RPL) and allotment of shares to certain firms against warrants linked to privately placed debentures issued by RIL.
RIL has already replied to SEBI notices in these cases.
In the case involving sale of shares of RPL, SEBI is said to have been investigating for a long time the alleged violation of insider trading regulations by RIL.
RPL used to be a separately-listed company, but it was later acquired by RIL and the merger process was also completed way back in 2009.
RIL has previously sought to settle the case through SEBI's consent mechanism, which allows for settlement of cases without admission or denial of guilt after payment of certain charges and disgorgement of ill-gotten gains, if any.
However, SEBI has rejected RIL's consent pleas on more than one occasion, terming the proposed payments as too less and on other grounds.
As per the company's annual report for the fiscal year 2011-12, SEBI had issued it show-cause notices in connection with the sale of shares of erstwhile RPL and the allotment of RIL shares to certain companies against detachable warrants attached to privately placed debentures issued by it.
"The company has submitted its reply to the same," RIL had said in the annual report.
RIL is currently buying back shares under a programme launched in February last year and has repurchased shares over Rs3,800 crore from public shareholders since then -- achieving 37% of the targeted amount of Rs10,440 crore.
The buyback programme, already the biggest buy-back by an Indian company, would end on 19 January 2013.
Yesterday, SEBI proposed significant changes to existing framework for buyback of shares by companies from open market, including lowering the process for its completion to three months and a minimum repurchase of 50% of the target.
The proposals have been made in a discussion paper floated by the market regulator and a final decision would taken after taking into account comments from the public.
Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India says CCI
New Delhi: Fair trade regulator Competition Commission of India (CCI) has approved 30% stake purchase by state-owned Punjab National Bank (PNB) in MetLife India Insurance Company, reports PTI.
CCI said the deal would not have any adverse impact on the competition scenario.
In its order on 26th December, CCI noted that operations of PNB and MetLife India are not similar or identical.
"Although PNB provides services to MetLife India as a distribution agent, the share of MetLife India in the business of life insurance is relatively insignificant and is not likely to raise any adverse effect on competition in India," CCI said.
In 2011, PNB had announced picking up of 30% stake or about 60.38 crore shares in MetLife India for an undisclosed amount.
Besides, the two entities had reached an agreement following which PNB is acting as an agent of MetLife India for the distribution of its insurance products.
MetLife India is a joint venture between MetLife International (an affiliate of US-based MetLife Inc) and group of Indian investors.
Both PNB and MetLife India had approached the fair trade regulator for approval on 7 December 2012.