Companies & Sectors
Reliance bank guarantee issue to be resolved within 15 days

According to Moily, while the proposed bank guarantee would secure the government’s interests, the higher pricing would protect the interests of Reliance Industries

M Veerappa Moily, minister for Petroleum and Natural Gas on Tuesday said that he is confident of resolving the issue of securing $135 million as bank guarantee from Reliance Industries Ltd (RIL) within a fortnight to enable the company to charge higher gas price from 1 April 2014.

 

“I am confident of settling the bank guarantee issue with Reliance within a fortnight,” Moily told reporters when asked if he would set a timeline for resolving the vexed matter.

 

According to the ministry, while the proposed bank guarantee would secure the government’s interests on one hand, the higher pricing would protect the interests of RIL on the other.

 

The bank guarantee is being sought as the government feels that the steep fall in KG-D6 gas output is not because of geological reasons, as is being claimed by RIL, but on account of the company hoarding the gas to make a windfall gain from next April when gas prices will be doubled.

 

If the hoarding allegations are true, then bank guarantees would be encashed with interest for the period from 1st April to the date the charges are proved.

 

He said unlike the flurry of negative news regarding the issue between the government and RIL, the only major issue is the arbitration settlement, which is pending with the courts now.

 

“We have, over the past few months, cleared as many as $7-billion worth investment proposals submitted by RIL,” the Minister said, adding that the media was only highlighting the negative news.

 

Moily said he expects the Supreme Court to appoint a third arbitrator at the earliest so that the issues between the nation’s largest private company and the Government could be resolved at the earliest.

 

The ministry had recently asked RIL to provide a bank guarantee of $135 million every quarter to get a higher price for natural gas from 1st April.

User

COMMENTS

sathyacumaran

3 years ago

sathyacumaran
operational head india
singapore media and channel group
when the Govt had leased the KG basin they have the full control and afterall the KG basin had been leased to highest bidder and Reliance being the highest bidder they have been alloted and first of all when Oil exploration and price fixing norms is concerned we are exploring in india why should be fix the price in Dollar and when we gwt oil why should we export and then import at higher rate we feel that there are three major lobbies in Prime Minister cabinenet one is OIl Lobby Finance Lobby and third is the official Lobby all these people what ever the import is done they get their due share apart from the salary its equivalent to steal money from their own house who is benefitted only God should punish them

SEBI cracks whip on MCX Biz Solution for selling stock tips, forgery

SEBI passed an order against MCX Biz Solutions and its proprietor Syed Sadaq for selling trading tips, misrepresenting facts and showing fake sub-broker registration certificate on its website

Market regulator Securities and Exchange Board of India (SEBI) has barred MCX Biz Solutions (MBS) and its promoter Syed Sadaq from selling trading tips and accessing stock markets in any manner. MBS was soliciting and collecting money from public and was promising high returns.
 

SEBI found MBS displaying a forged sub-broker registration certificate on its  website and making other representations on regarding stock tips for trading, stock market, guidance on the entire investment process for both commodity and equity and best online stock trading calls.
 

SEBI also directed MBS and Sadaq to keep all the money collected from investors in nationalised bank’s escrow account and file a report with SEBI in this regard within seven days from the date of the order.
 

SEBI investigation revealed that, the address of Mumbai given by the entity on its website does not exists and it was originally situated at Hyderabad. On perusal of the account statements, it was observed that as of 27 August 2013 about 17 investors had deposited total funds of Rs3.56 lakh in the Axis Bank account and 10 investors had deposited fund of Rs1.43 lakh in the SBI account of MBS.
 

SEBI said that, it has not issued any certificate bearing number '0095979' with registration number 'INS838639255’, as displayed on the website and no official by the name of ‘Meera Kulkarni’ whose signature is mentioned on the said certificate was in employment of SEBI.  The market regulator said it has never granted any certificate of registration to any entity by the name of ‘Bonanza Promotional Ltd’ to act as a stock broker as represented in the said certificate. However, MBS or its proprietor Syed Sadaq has not replied to SEBI’s order till date.
 

SEBI passed an order dated 18th November to MBS and its proprietor Syed Sadaq.

  1. SEBI restrained from accessing the securities market and further prohibited buying, selling and directly or indirectly dealing in securities and banned MBS being associated with the securities market in any manner till further directions.
  2. SEBI directs to cease and desist from undertaking any activity in the securities market, directly or indirectly, in any manner till further directions.
  3. SEBI directs to immediately withdraw and remove all advertisements, representations, literatures, brochures, materials, publications, documents, websites etc. in relation to any activity in the securities market.
  4. SEBI prohibited from mobilizing funds from the public, in whatever form, till further directions.
  5. SEBI directed to keep the entire money collected by them from the investors forthwith in an escrow account opened with any nationalised bank and file a report with SEBI in this regard within seven days from the date of the Order.

User

Value Being Discovered
Our value pick list contains 34 stocks which were covered by us in the past; of these, 26 are...
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

We are listening!

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

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

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)