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.
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.