Citizens' Issues
Karnataka gropes in the dark as power blinks
 Karnataka is groping in the dark again as a deficit southwest monsoon has plunged the state into a major power crisis due to poor hydel generation and demand outstripping supply over the last few months.
 
With the state-run thermal plants at Raichur and Bellary in the northern districts and a private thermal plant at Udupi in the coastal district operating below capacity due to technical glitches, thousands of industries and small scale units across the state are reeling under prolonged power cuts.
 
"As the June-September monsoon rainfall was about 30 percent deficit in the state, water storage in all the 15 reservoirs is below 50 percent of their capacity this year. As we have to store enough water till next the rainfall (a year away), hydel power output has been reduced by 40 percent till (next) summer," a senior official told IANS here.
 
Failure to add generation capacity over the last decade commensurate with the growing demand has also forced the state government to buy power from private producers at a high cost for ensuring minimum supply to users, including commercial, agriculture and domestic.
 
Absence of natural resources like coal and linkages to other sources have forced the state to rely heavily on monsoon-dependent hydel resources to generate about 60 percent of its energy requirements.
 
Shortage of transmission lines is also preventing the state from drawing more power from the national grid though the central government has offered to supply more that its quota of 2,400 MW from energy surplus states.
 
"The state failed to invest in generation capacity over the years and a few projects launched during the previous (BJP) government remained incomplete for technical and environmental reasons. As a result, power cuts are back with vengeance for four-to-six hours in cities and towns and eight hours in rural areas," a representative of an apex industry body lamented.
 
According to the state-run Karnataka Power Corporation Ltd (KPCL), though the state has a combined installed capacity of 6,625 MW, it is able to produce only about 70 percent of it due to less hydel sources and technical snags in thermal plants.
 
"In spite of additional supply from central grid, renewable energy sources like wind and solar and private producers to the state grid, the shortage is about 2,200mw, while the peak demand is about 9,500 MW," a KPCL official told IANS.
 
A deficit monsoon after two-three consecutive years of above average season has also resulted in drought prevailing in 25 of the state's 30 districts. The prolonged dry spell and hot climate has also sent energy consumption spiralling in urban and rural areas since September.
 
"To maintain minimum supply to commercial, agricultural and domestic users, we have asked industries in and around Bengaluru to opt for a staggered weekly holiday instead of all closing on Sunday so that we could reduce the load on the grid by 150 MW daily from November 2," Bescom (Bangalore Electricity Supply Company) director H. Nagesh told IANS.
 
Sudden tripping, outages without prior intimation and wild voltage fluctuations have forced hundreds of IT and biotech firms in this tech hub to install diesel generators, invertors and high-powered solar batteries at their facilities to ensue quality power for their 24x7 operations.
 
"As the available power has to be distributed across the state and on priority to farmers, commercial and domestic users, industries have to bear with the shortage and have weekly off on any working day by turn so that they can get power for six days without load shedding," Nagesh noted.
 
The state-run utility provider distributes power to eight southern and central districts of the state, including Bengaluru, which consumes one-third of the total power, as it has the largest number of industries and companies - and 10-million citizens.
 
"With winter sitting in from November, we hope to reduce power cuts gradually, as consumption by commercial and domestic users will be less till March. Industries can reverse to Sunday weekly off from January," Nagesh added.
 
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.

User

Action on High Frequency Trading: SEBI says fact-finding exercise already underway
In a reply to a set of 51 questions raised by Moneylife on 12th September on high frequency trading in NSE, SEBI has just informed us that the issue is drawing its serious attention and that a fact-finding exercise is already underway
 
Market regulator Securities and Exchange Board of India (SEBI) told Moneylife that its Technical Advisory Committee (TAC) has extensively discussed the issue of high frequency trading (HFT) and the matter is drawing its serious attention. SEBI was replying to a detailed email sent on 12 September 2015 by Sucheta Dalal, Managing Editor of Moneylife. It said, "We would like to thank you for taking efforts to flag the issue. We would like to inform you that a fact-finding exercise is already under way by SEBI. The matter has also been discussed extensively in the Technical Advisory Committee of SEBI and is drawing its serious attention. While we have noted the issues raised in your email, you will appreciate that we would not like to make comments on matters which are under investigation."
 
The same 51-point questionnaire was also sent to top executives of National Stock Exchange (NSE). However, there has been no response from the stock Exchange. In June this year, Moneylife had written about the allegations by a Whistleblower about NSE’s HFT operations in 2011-14 period . Moneylife had duly contacted NSE for its response before writing the article. On that occasion too, the NSE had refused to respond despite three attempts by Moneylife to elicit its views. After Moneylife published the articles on HFT , NSE filed a Rs100 crore defamation suit against Moneylife with prayers to remove the articles and stop Moneylife from writing further on the issue. A single Judge in Bombay High Court dismissed this. The judge also asked NSE to pay to Ms Dalal, Debashis Basu, Editor & Publisher of Moneylife Rs1.5 lakh each as cost and Rs47 lakh to two trusts, Tata Memorial Hospital and the Masina Hospital for free treatment of the poor. The Exchange has filed an appeal against that order. 
 
Of the 51 questions Moneylife had asked to SEBI and NSE, some the questions were:
  1. What is the additional information that a co-location user get vis-a-vis other brokers?
  2. What is the response time that NSE co-location users receive vis-a-vis non-co-location users? 
  3. How many physical co-location facilities does NSE have? Why is there more than one colocation? 
  4. What are the advantages a person will enjoy if he or she continued to get faster information vis-a-vis others in NSE co-location?
  5. What advantages do members in co-location receive vis-a-vis members who are not in co-location?
  6. What is the value of orders placed by members in last 5 years from NSE co-location? 
  7. Under which SEBI circular or guidelines did NSE start providing co-location facilities? If these services were started before any guidelines were formulated, did NSE ask for specific SEBI approval for starting such facilities?
  8. Were some NSE members ever allowed to log in ahead of others systematically?
Here is the reply we received from SEBI...
 
Subject: Your email to Chairman, SEBI with regard to complaint of a market participant against NSE
 
This has reference to your email dated September 12, 2015 to Chairman, SEBI wherein you had sought certain details regarding an anonymous complaint of a market participant against NSE.
 
We would like to thank you for taking efforts to flag the issue. We would like to inform you that a fact finding exercise is already under way by SEBI. The matter has also been discussed extensively in the Technical Advisory Committee of SEBI and is drawing its serious attention. While we have noted the issues raised in your email, you will appreciate that we would not like to make comments on matters which are under investigation. However, we would like to inform on the various measures taken by SEBI, in the recent past. 
 
SEBI has ensured that regulation of the securities market keeps pace with the dynamism displayed by the capital markets. SEBI has taken various proactive measures over the last few years to ensure that appropriate risk management framework is in place to address the risks associated with adoption of such technological advancements. 
 
In line with the above emphasis, SEBI was one of the first securities market regulators globally to put in place a framework for regulation of algorithmic trading. SEBI has also put-in place a regulatory framework to ensure fair and equitable access to the co-location facility and integrity and security of the data and trading systems. The regulatory framework was finalized after taking on-board views of the market participants through a discussion paper floated on May 03, 2013. High Frequency Trading (HFT) recently has drawn the attention of IOSCO too and the member jurisdictions are deliberating the impact of such trading on the market structure and market participants. SEBI is in the process of studying various issues involved and gather international experience to take further regulatory steps to regulate HFT.
 
In addition, SEBI has also issued circulars on various other technology related areas such as Cyber security and cyber resilience framework for stock exchanges, clearing corporation and depositories, Testing requirements for trading software, Business continuity planning and disaster recovery, Direct Market Access, Internet Based Trading, Safeguards to avoid trading disruption in case of failure of software vendor, etc.
 
We may like to state that SEBI would take all necessary steps in the interests of investors in securities and market integrity.

User

COMMENTS

n k gupta

12 months ago

Dear Ms Dalal,

My best wishes with moneylife team for wining HFT case and keepit up.

n k gupta

12 months ago

Dear Ms Dalal,
My best wishes to you regarding the matter of HFT.

Ramesh Gangappa

1 year ago

Good efforts. Congrats Money Life Team.

Raj K Swamy

1 year ago

By saying they are investigating, is the exchange admitting that the colocation facilities have been provided without studyiong the implications?

Balasubramanian

1 year ago

Congrats Money Life Team. Your work is really admirable.

manoharlalsharma

1 year ago

Action on High Frequency Trading: SEBI says fact-finding exercise already underway / it is common to all till do not intervening of COURT or POLITICIAN

vswami

1 year ago


“We may like to state that SEBI WOULD TAKE ALL NECESSARY STEPS IN the interests of investors in securities and market integrity.(bold FONT supplied)”

IMPROMPTU (OFFHAND - to share own unbiased perceptions):

Most of the points, rather tall claims, sought to be made and canvassed , in defence of the specific allegation (s) made , in the form of investigative inquiry by Moneylife, against the thus far continuing failure on the part of the regulatory authority, admittedly so, “to take all necessary steps “, go to serve as a clear pointer to the field reality; that is, that the authority has not considered it why it is of the utmost importance to keep a track, mentor and plug in the requisite corrective steps, on its own and in the normal course itself; and on a timely basis. This perforce brings to one’s mind the proverbial tomboyish act of thinking of and locking the doors of the stable, after the horse (s) has (ve) managed to and clean bolted away.
< Lock the barn door after the horse has bolted - Idioms by ...

Also the other commonly heard of story of the Lion King – its ruling the affairs in the jungle.

To quickly narrate (at the cost of repetition):

The Lion King told a miserable mouse,- as the RULER, me lay down the law for the jungle; but it is up to you to find self a satisfying and effective solution to any of own problems.

Point to ponder: Are our men in governance, or the bureaucracy, the so called and duly empowered regulators being no exception, so far as common memory goes, historically, any differently molded from / in comparison to the Lion King?

Over to the pro- activists at large in general, and to those @Moneylife with expert knowledge in particular, hoping for further incisive deliberation!

In the present context, it may not but be apt and worthwhile to pull out from the cupboard and have a relook through the special committee report on the topic of, - ‘functioning’ regulatory and semi regulatory authorities, in place for long.

Dr.Abhik De

1 year ago

But no action on churning/over transaction of mutual fund products byintermeiary/distributors.Wondered!

CVC seeks SC clarification on sharing confidential information
The Supreme Court will hear on November 12 the Central Vigilance Commission's (CVC) application seeking clarification whether it could share, with CBI's former special director M.L.Sharma, the confidential reports on coal block scam that it had submitted to the top court in sealed cover.
 
The coal bench of Justice Madan B. Lokur. Justice Kurian Joseph and Justice A.K.Sikri had appointed the Central Bureau of Investigation official M.L.Sharma to inquire whether the meetings that the then agency chief Ranjit Sinha had with the accused in coal block allocation scam in any way impacted the investigations or their final outcome.
 
The CVC has sought the clarification pointing to the "confidentiality" of the information sought by Sharma and the "nature and scope of the inquiry" to be undertaken by him as ordered by the apex court by its May 14, 2015 order.
 
The apex court by its September 14 order had allowed Sharma to access whatever records he felt necessary for the purposes of undertaking his inquiry.
 
Sharma, in a September 28 communication, asked the CVC to make available to him its comments on the investigation by the CBI in each of the 254 coal blocks. He has also asked the CVC to provide him the correspondence that might have been exchanged between it and the CBI on the subject. 
 
The report sought by Sharma from the CVC relates to one that the vigilance watchdog had submitted to the apex court in sealed cover after scrutinising the CBI investigation into each of 254 coal blocks whose allocation was under cloud. It had undertaken the screening of the CBI probe into the coal block allocation cases following the apex court's March 28, 2014 directions.
 
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.

User

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