ONGC stake sale on 1st March; floor price fixed at Rs290 a share

The Centre on Tuesday decided to offload 5% stake in ONGC on 1st March through auction route at a floor price of Rs290 a share that could fetch the exchequer about Rs12,000-Rs13,000 crore. The floor price for the sale has been fixed at Rs290 per share

New Delhi: Running against time to meet the Rs40,000 crore disinvestment target, the Centre on Tuesday decided to offload 5% stake in ONGC on 1st March through auction route at a floor price of Rs290 a share that could fetch the exchequer about Rs12,000-Rs13,000 crore, reports PTI.

“The ONGC stake sale through the auction route (will take place) in couple of days,” oil minister Jaipal Reddy told reporters after a meeting of the Empowered Group of Ministers (EGoM) which was chaired by finance minister Pranab Mukherjee.

“The floor price for the sale has been fixed at Rs290 per share,” ONGC said in a late night filing to NSE. The floor price, the minimum price for selling a share, is over 2% higher than ONGC’s closing price of Rs283.05 on NSE and Rs283.55 on BSE.

The auction will be between 9.15 am and 3.30 pm.

The government owns 74.14% stake in ONGC and proposes to offload 427.77 million shares or 5% equity. The sale may fetch the hard-pressed government about Rs12,000-Rs13,000 crore this fiscal.

The shares would be sold to institutional as well as retail investors on the “price priority” basis.

Six brokers including Citigroup Global Markets India, Morgan Stanley India Company and DSP Merrill Lynch will manage the share sale.

The auction route or “offer for sale of shares by promoters” involves very little paperwork and the whole process can be done within one trading day.

Capital market regulator Securities and Exchange Board of India (SEBI) had issued norms allowing promoters to sell stake by way of auction, through a separate window on BSE and the NSE, which has to be completed within a day.

This is the second disinvestment this fiscal, after mopping up Rs1,145 crore through stake sale in Power Finance Corporation. The government envisages to raise Rs40,000 crore through disinvestments this fiscal.


Don’t outsource due diligence of distributors: SEBI to MFs/AMCs

SEBI on Tuesday asked mutual funds and asset management companies (AMCs) not to delegate due diligence activities of distributors to any agency as it is their “sole responsibility” to carry out the process

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Tuesday asked mutual funds and asset management companies (AMCs) not to delegate due diligence activities of distributors to any agency as it is their “sole responsibility” to carry out the process, reports PTI.

In a notification, SEBI said, “It is hereby clarified that the due diligence of distributors is solely the responsibility of mutual funds/AMCs. This responsibility shall not be delegated to any agency”.

However, it added, “mutual funds/AMCs may take assistance of an agency of repute while carrying out due diligence process of distributors”.

It further said that in order to avoid conflict of interest, AMCs will have to appoint a separate fund manager for each separate fund unless the investment objectives and assets allocations are the same and the portfolio is replicated across all the funds managed by the fund manager.

Noting that perfect replication of portfolio between the mutual fund scheme and schemes/products under other permissible activities of AMC may not be achieved at all times, SEBI said, “it has been decided that the replication of minimum 70% of portfolio value shall be considered as adequate for the purpose of said compliance...” 

That is subject to ensuring “AMC has in place a written policy for trade allocation and it ensures at all points of time that the fund manager shall not take directionally opposite positions in the schemes managed by him”.

Also, an AMC will have to disclose on its websites the returns for all the schemes on a monthly basis.

“This circular is protect the interests of investors in securities and to promote the development of, and to regulate the securities market”.

Further, in another circular, SEBI asked AMCs to disclose all details of debt and money market securities transacted in its schemes portfolio on their websites and forward the same to Association of Mutual Funds in India (AMFI) for consolidation and dissemination.

“These disclosures shall be made settlement date wise on daily basis with a time lag of 30 days,” it said.

Mutual funds will have to advertise details of pay out of dividends and impact of distribution taxes and money market schemes or cash and liquid schemes, SEBI said.


Despite SC judgment, HSC Board refuses copy of answer sheet under RTI

 A student from Mumbai who appeared for her HSC Board examination in October 2011 has been denied last week, copies of her original answer sheets of the three subjects

Last week, an anguished mother wrote to me: “This is xxxxx xxxxx from Mumbai.  I have applied for a certified copy of my daughter’s answer sheets from Maharashtra HSC Board as per the RTI (Right to Information) Act.  I received a letter from HSC Board stating that I can only see the answer sheets and they are not liable to give me a certified copy. Please advise me what I should do further. Please reply me urgently as the date kept for inspection is 24 February 2012.”

Reesha (named changed) had appeared for her Standard XII of the Maharashtra State Board of Secondary & Higher Education in October 2011. Her results showed that she had failed in three subjects. This prompted her mother to invoke the RTI Act to procure certified copies of her answer sheets. Last week, she visited the SSC/HSC Board office (as it is commonly termed)  located in Pune but was denied the copies, in flagrant violation of the Supreme Court judgment in August 2011, which gives every student the right to copies of his/her answer sheets.

The manner in which the officials of the HSC Board dealt with this issue is truly shocking.  When this mother applied for certified copies of her daughter’s original answer sheets of three subjects on 7th January to the Public Information Officer (PIO) of the HSC Board, there was no reply. The pretext being the Board is still framing guidelines on the information to be given for queries of copies of the answer sheets, as a sequel to the Supreme Court judgment of August 2011.  However, a circular issued by the state government on 27th December had clearly stated that the Supreme Court directive should be followed in true spirit until the guidelines have been formulated and formalized.

Since the PIO did not reply, this mother filed an appeal to the First Appellate Authority (FAA).  (Just to recall, the Supreme Court has given a historic order ruling that every student of this country has the right to get a copy of his or her answer-sheet in every examination he or she sits for—be it the state board, CBSE or any other competitive examination!)

The FAA allowed the mother to only see the answer sheets (as if it was doing a big favour) on 24th February, with just 24 hours’ notice. The mother resides in Thane and she had to come to Pune immediately the next day. However, the letter sent by the FAA harshly put down terms and conditions, making the applicant feel like a “criminal”. They are:

You are allowed to only see the answer sheets. You will not be allowed a copy of the same

•        You will be given only 10 minutes to see the answer sheets

•        You will be charged Rs500 for seeing the answer sheet of each subject

•        You are required to get a demand draft for the same

•        If you are not present at the scheduled date for seeing the answer sheet, you will never be given an opportunity again

•        Please do not get any writing pad, pen, mobile, mobile camera or any other electronic gadget along with you

•        You will have to fill a form stating that you will not indulge in any misconduct while seeing the answer sheet

•        If the student tries to misbehave, a police case will be registered against him/her

•        Only one guardian/parent will be allowed to accompany the student to see the answer sheet

•        The applicant and his guardian/parent will have to state in writing that they have seen the answer sheets

•        The student will not be allowed to see the answer sheets again

•        Please note that your visit would be under CCTV surveillance

Vijay Kumbhar, a RTI activist, and I suggested to the mother to visit the HSC Board as per the FAA’s orders but to register her protest regarding denying her right to be given certified copies of the answer sheets and against the charges of Rs500 per subject for seeing answer sheets. When she paid the visit, she was shown the answer sheets. She registered her protest verbally.

What should she do? She should immediately write to the Supreme Court complaining about its order being violated, says Mr Kumbhar. He also points out that, “if the FAA has mentioned that information could not be provided because the Board has yet to frame the guidelines, then how could it charge Rs500 per subject from the RTI applicant? Also, if the HSC Board has anyway shown the answer sheet, isn’t it meaningless not to provide her the certified copy? Also, when the Board’s circular has clearly stated that the SC order should be followed until its own guidelines are framed, why did it violate this norm?

Leading RTI activist and legal luminary Divya Jyoti Jaipuriar who appeared on behalf of the petitioner in the answer sheet case had stated after the Supreme Court judgment, “In the order delivered by the Supreme Court, the bench clarified that the evaluated answer sheet is covered under the definition of ‘information’. It also clarified that it is the duty of the Public Authority to allow maximum disclosure as envisaged by the RTI Act.”'

He further stated that, “Dealing with the issue of ‘fiduciary relationship’, the court has explained the fiduciary relationship in detail and held that the examination conducting bodies do not retain the evaluated answer sheets under any fiduciary capacity. Hence, the court held that that the exemption under Section 8 (1) (e) will not apply to the disclosure of answer-sheets. The court also dismissed the contention that the entire system will collapse once disclosure is allowed under the RTI Act. As a matter of fact, it was argued on behalf of the MKSS and JOSH that some universities allow disclosure of answer sheets under the RTI Act and they do not face any difficulty in the process and their system have not ‘collapsed’.”

The HSC Board’s move is indeed detrimental to information dissemination and transparency in educational institutions and boards.

Also read:

(Vinita Deshmukh is a consulting editor of Moneylife. She is also an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte. She can be reached at [email protected])





5 years ago

we should publicly humilate these guys for setting stone age rules...

Rambabu Shastri

5 years ago

Getting hold of your own HSC answer paper to judge from someone else how it was corrected is nothing but pettiness. Using RTI to get it, shows the mental makeup of the person asking for it.

Note that such examinations have a controlled and unbiased system, where it is extremely difficult for somone to identify whose paper it is. The sequence of controls further strengthens the system. Prior to RTI, no one asked for marksheets and one instance of opening up answer sheets will lead to chaos in the system. Imagine, I get my answer sheet, find that I can dispute the corrections. Then I tell the college where I seek admission, hold on, you cannot admit others, because my answer sheet is under re-evaluation and hold the whole system to ransom. How stupid!

There is no justification for such a move by anyone. Even when you give professional exams abroad like the AICPA, etc, you are not given access to your answer sheets. As Indians, we have a total lack of trust or faith on the way we work or interact in life.


5 years ago

SC judgements of hanging atrocious criminals have still not been implemented. How do you expect an early implementation in such a local case ?

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