Two Interesting News Bytes ~ SAT adjourns Reliance Insider Trading Appeal & Government announces to revive UMPP Tenders Bids
SAT adjourns Reliance Industries Insider Case Appeal to October 11,2013
This Case is a hot potato with apparent heavy political overtones
The Securities Appellate Tribunal adjourned the Reliance Insider Trading Case to October 11,2013 and also dismissed the intervention petition of an Urdu Editor,M Furqan to be made a party to the appeal.He edits the UP Daily ‘Sach Bilkul Sach’ and had accused collusion between SEBI and Reliance Industries to settle the matter ~ A Three Judge Bench said the petitioner can approach the High Court or the Supreme Court ~ Darius Khambhatta,the Mahrashtra Advocate General was representing SEBI while Janak Dwarkadas was representing Reliance Industries ~ Reliance had appealed to SAT that SEBI had rejected it’s Consent Application to settle the matter
This matter relates to Insider Trading in November 2007 where it is suspected that RIL made a killing of hundreds of Crores inside a fortnight on insider news ~ supposedly Rs 513 crs but could have been much higher
From FY 2002/3 all penalties go directly to the Consolidated Fund of India and not into SEBI.What SEBI does get are the Fees and Charges from FIIs,Brokers and Derivative Dealers etc.SEBI’s Annual Report of FY 13 shows Rs 149 crs collected through such fees in FY 12/13
SEBI has a strong case and last year it came out with stricter regulations that does not allow for consent applications in Insider Trading cases ~ had blogged on it as below
In the Right Direction ~ SEBI announces that Insider Trading and Front Running and Fraudulent Practices will not be allowed in applications for Consent Orders…Well Done SEBI ~ Clean Up our Markets so that Promoters no longer Can!
Saturday, May 26th, 2012
For those who are interested in some details of how the Insider Trading is purported to have transpired have a look at these two blogs I posted in August 2008
Proof Of Insider Trading in RPL…Yet Blind Eye Turned by SEBI
Wednesday, August 6th, 2008
Mukesh Ambani coterie accused by Samajwadi Party for Insider Trading in RPL and Jai Corp
Tuesday, August 5th, 2008
Private Companies may not fuel India’s Ultra Mega Power Plans
The last Ultra Mega Power Plant Tender was awarded to Reliance Power in 2007 for Tilaiya.The Tender had attracted 20 bidders
The Government,through it’s nodal Agency Power Finance Corp is now again set to invite bids for two UMPPs in Odisha and Tamil Nadu.In fact the Bid Invitation on a DBFOT Basis for the 4000 MW Cheyyur UMPP in Tamil Nadu has also been announced today
Private Players had requested the Government to allow UMPP on a Build ,Own and Operate (BOO) Basis instead of the current Design,Build,Finance ,Operate & Transfer (DBFOT) as the DBFOT Model was found to be unbankable and unviable
So far Four UMPPs have been awarded.Tata Power is constructing at Mundra in Gujarat while Reliance Power has got the other three at Sasan in Madhya Pradesh,Krishnapatnam in Andhra Pradesh and Tilaiya in Jharkhand
UMPPs cost Rs 25000 crs to Rs 30000 crs to build and the Private Power Sector is already laden with heavy debt and have cost and implementation delays on existing projects on account of several reasons that include coal and gas shortages and non viability on existing tariffs on account of cost increases ~ Companies like Tata Power,GVK,GMR,Essar,JSW,Adani Power and Lanco may not bid for the new UMPPs on offer ~ Reliance Power cannot bid for a new UMPP until it has at least one UMPP on stream
NTPC @ Rs 149 and Larsen & Toubro @ Rs 840 are ideally placed,both technically and financially, to bid for the two new UMPPs on offer