Listed firms were earlier making their annual reports available on the EDIFAR website, which has been discontinued
The market regulator Securities and Exchange Board of India (SEBI) has asked stock exchanges to display annual reports of listed companies on their websites for the financial year 2009-10 onwards, a move that could help investors take informed decisions, reports PTI.
"All stock exchanges are advised to make the annual reports for the financial year 2009-10 onwards... available on their respective websites," SEBI said in a circular.
It further said that exchanges are advised to take immediate steps in this regard.
Welcoming the move, SMC Capitals Ltd’s equity head Jagannadham Thunuguntla said, "This is a step by SEBI in the right direction. The annual report will enable investors to take informed decisions."
Currently, companies file their financial results as well as their shareholding details with the stock exchanges on a quarterly and annual basis.
Earlier, listed companies used to make their annual reports available on the EDIFAR website.
However, SEBI said, with the discontinuation of the EDIFAR site, it has become necessary to ensure that annual reports of listed companies are available to investors on alternative sites.
EDIFAR is the Electronic Data Information Filing And Retrieval system. It was an automated system for filing, retrieval and dissemination of time sensitive corporate information, which was being filed physically by the listed companies with the stock exchanges in India.
A 20th April judgement of the Bombay High Court has overturned established practice in the matter of transmission of shares by giving all ownership rights to the nominee rather than the legal heirs.
This means that anyone who has nominated persons other than their chosen or legal heirs in their demat accounts would do well to make appropriate changes.
In the verdict, Justice Roshan Dalvi struck down a petition filed by Harsha Nitin Kokate, who was seeking permission to sell some shares held by her late husband. The Court noted that as she was not the nominee, she had no ownership rights over the shares.
Ms Kokate’s lawyer had argued that as she was the heir of her husband who had died intestate (without a will), she should have ownership rights of the shares, and be able to do anything with them as she wished. In this case, Ms Kokate’s husband had nominated his nephew in favour of the shares.
Ms Kokate’s lawyer went on to claim that the nominee had no legal ownership rights over shares, and was merely entitled to hold the shares in trust for the estate of the deceased. He pointed out similar cases under the Insurance Act with respect to life insurance where although the policy is paid to the nominee of the deceased policy holder, it is only held by them in trust for the estate, as the Act provides no other provision for any other rights of the nominee. He also pointed out that under the Maharashtra Co-operative Societies Act, while the shares in the society are transferred to the nominee, it does not result in the flat being transferred to the nominee. He again acts as a trustee for the estate of the deceased and the society is not concerned with any disputes between the heirs over the property.
Justice Dalvi however noted that under the provisions of the Companies Act and the Depositories Act, Acts which govern the transfer of shares, the role of a nominee was different.
“A reading of Section 109(A) of the Companies Act and 9.11 of the Depositories Act makes it abundantly clear that the intent of the nomination is to vest the property in the shares which includes the ownership rights thereunder in the nominee upon nomination validly made as per the procedure prescribed, as has been done in this case.”
This excerpt from the judgement makes it clear that since the nomination was done in the proper and prescribed manner, the nomination was valid, and the nominee was entitled to ownership rights of the shares, to the exclusion of the legal heir.
“The Court has reemphasised and clarified the position in law both in regard to nomination as far as shares in companies, as well as nomination as under the Maharashtra Co-operative Societies Act which has an analogous provision, and therefore the ambiguity that used to exist in the minds of legal descendents should now be put to rest,” said Advocate Jamshed Mistry of the Bombay High Court.
“In light of this judgement, it would be prudent for legal descendents to get themselves nominated rather than wait for the law to take its course, in which case the person who has been nominated will get the shares,” said Advocate Dipesh Siroya of the Bombay High Court.
Ms Kokate can now appeal to the Supreme Court, and if the apex court delivers a contradicting judgement, the High Court’s judgment will be null and void.
The notice of motion was No. 2351 of 2008, in suit No. 1972 of 2008
AK Maheshwari had appeared for Ms Kokate, while Shyama Parkar and HS Shreepad Murthy appeared on behalf of the defendants.
The company has made 18 gas finds in the eastern offshore KG-D6 block, of which Dhirubhai-1 and 3 were put into production last April, at a cost of $8.836 billion
Reliance Industries (RIL) has said that developing smaller gas fields in the KG-D6 block is economically unviable at the current price of $4.20 per (million metric British thermal unit (mmBtu) and it may seek a rate of at least $6 per mmBtu in 2014, when the fields are put into production, reports PTI.
RIL has made 18 gas finds in the eastern offshore KG-D6 block, of which two–Dhirubhai-1 and 3–were put into production from April, 2009, at a cost of $8.836 billion.
The private sector explorer is working on an integrated development plan for the rest, but wants a price higher than the $4.2 per million metric British thermal unit rate paid for gas from Dhirubhai-1 and 3.
"It is absolutely not viable (to develop smaller fields adjoining Dhirubhai-1 and 3 fields in KG-D6 block) at current prices," RIL executive director P M S Prasad told PTI.
The smaller fields are proposed to be developed as a common pool, using existing facilities of the Dhirubhai-1 and 3 fields and RIL was in the process of preparing a multi-billion dollar integrated development plan, he said.
RIL had in 2008 submitted plans to the government to invest $5.91 billion to develop nine satellite fields, but last year pruned the list to just four, as the current gas price of $4.2 per mmBtu did not justify such a huge investment.
The amended $1.5 billion development plan for the four fields is being withdrawn and a new integrated plan will be submitted, he added.
The fields would start producing in 2014, the same year when the existing price of $4.20 per mmBtu expires. The government had in September, 2007, approved $4.205 per mmBtu as the price of gas from Dhirubhai-1 and 3 for five years, which was to be reviewed at the end of this period.
Though Prasad refused to speculate on what price RIL would seek for the marginal fields and the revised rates for fields currently under production, sources in the know said that $6-7 per mmBtu is the rate RIL may be looking at.
In all likelihood, the company may go in for a common rate for both sets of fields (current as well as small ones).
"I cannot say what will be the price discovery then (2014), but our economics tell us that they (smaller fields) are not viable at current prices," Prasad said.
Under the Production Sharing Contract (PSC), RIL has to discover the price the market is willing to pay and submit it to the government for approval. The government may approve it as it is, or do it with minor changes, or even reject it.
It will take four to five years to bring these fields into production and may help RIL extend the 80 million cubic metres per day peak output envisaged from KG-D6. Peak output from the Dhirubhai-1 and 3 fields is envisaged for five years.