The CBI has said in an affidavit to the Supreme Court that the agency will pursue the matter with the help of Liaison Officer in Swiss Embassy besides sending its own team to get early response from Switzerland
New Delhi: Probing the beneficiaries of Swan Telecom, which got a second generation (2G) licence, the Central Bureau of Investigation (CBI) has sent a request to Switzerland for investigating the antecedents of Mavi Investment Fund which is alleged to have made a payment of $4 million to Reliance, reports PTI.
According to CBI, a Letter Rogatory (LR) was considered necessary to be sent to Switzerland for which an approval was taken from home ministry on 30 August 2011.
A special court issued a Letter Rogatory on 14th September which was later translated into French language as per the requirement of Mutual Legal Assistance treaty with Switzerland.
The CBI has said in an affidavit to the Supreme Court that the agency will pursue the matter with the help of Liaison Officer in Swiss Embassy besides sending its own team to get early response from Switzerland.
“Role of Anil Ambani and other employees of Reliance in allocation of GSM spectrum to Reliance under dual technology with reference to sale of 9.99% share in Swan Telecom to Delphi Investment is being probed during further investigation,” the CBI had said in its response to a petition by Prashant Bhushan and Subramanian Swamy.
“It is revealed that immediately on receipt of approval for GSM services from Department of Telecom (DoT), Reliance Telecom sold its directly held 107,91,000 shares of Swan Telecom to Delphi Investment at a throw away price of Rs15 per share whereas Etisalat brought additional equity of Swan Telecom at Rs285 (approximately) per share.
“...it makes it clear that the said shares sold by Reliance Telecom to Delphi Investment were grossly undervalued,” CBI said.
The agency further claimed that at time of transfer of the shares of Swan Telecom, Delphi was held 100% subsidiary of Swiss-based BTS Belvior Investment.
"The said payment of $4 million was made to Reliance out of the funds received from Mavi investment fund,” the CBI said.
The agency wants to know the structure and owners of the Swiss based company for which Letters Rogatory had been sent, official sources said.
Fearing that the trend will impact corporates’ ability to raise funds to finance their expansion projects, the SMC Global Securities report said this may result in a slowdown in their capacity building and job creation
New Delhi: Owing to a sluggish trend in stock markets, at least 22 companies, mainly from real estate and power sector, have called off their initial public offers (IPOs) in the current fiscal, reports PTI.
“The bad mood of the capital market has led 22 companies to call off their IPOs during this fiscal. Even after getting approval from market regulator Securities and Exchange Board of India (SEBI), these companies could not open their IPOs within the valid period of one year from the date of approval due to the ongoing turmoil in the capital markets,” SMC Global Securities said in a report.
Among the 22 companies that cancelled their IPOs, a host of them belong to power and real estate sectors, including Sterlite Energy, Jindal Power, Avantha Power, Lodha Developers, Ambiance Real Estate, Kumar Urban Developers, Neptune Developers, BPTP and Raheja Universal.
Fearing that the trend will impact corporates’ ability to raise funds to finance their expansion projects, the report said this may result in a slowdown in their capacity building and job creation.
SMC noted that the trend in the IPO market may set panic in the mind of the private equity (PE) funds, unable to exit from their investments.
PE funds generally invest in promising but unlisted companies in the hope of a later exit through IPOs.
Some companies also announced IPO deferrals, including One97 Communications and Micromax, owing to the volatile market conditions, the report highlighted.
Lodha Developers’ Rs2,500-crore IPO could not meet its opening deadline of 20th January 2011 and thus expired.
In tandem with volatile investor sentiment, two companies Greatship (India) and IND-Barath Power Infra, whose IPO is to open for subscription this week may not hit the capital market, the report said.
The BSE benchmark Sensex has plummeted by over 21% in the year so far and touched a 52-week low of 15,765.53 on 26th August.