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Bogus Afterthought
Posted by :
radhika_nandlal
Its so unfair that court proceedings cannot be videographed.
Oh that look on Mr. Salve and Mukesh`s face (when Ram Jethmalini said BOGUS AFTER THOUGHT) would have been auctioned for millions and pray what would have been the emotions on Anli`s face.. i would have burst out laughing did Anil burst into laughter.. lol...
Bihar govt issues legal notice to RIL
Posted by : subasu
The following excerpt from the BusinessLine explains the case of insider trading.
Mumbai, Nov. 23
Reliance Industries has filed for consent terms with SEBI to settle the regulator’s proceedings against it for alleged insider trading in shares of Reliance Petroleum in late 2007.
The company has proposed a payment of Rs 2 crore towards settlement of the case, sources confirmed. SEBI is understood to have assessed the gains from the alleged insider trading at Rs 513 crore.
An RIL spokesperson would neither confirm nor deny the development. It emerged on Monday that SEBI had sent RIL a show-cause notice in early October asking why the company should not be barred from accessing the capital market and why gains made from the alleged insider trading should not be disgorged.
Charges denied
This notice was a corrigendum to SEBI’s first show-cause notice, issued in April, asking RIL why action should not be taken against it for the alleged trading in shares of its then subsidiary Reliance Petroleum Ltd (RPL).
An RIL spokesperson said the company had sent its response to SEBI, but denied the charges against it: “RIL has always abided by all rules and regulations of SEBI and, hence, it has neither violated any provisions of Insider Trading nor has it acted in any manner so as to attraction provisions under Sections 11(i), 11(B), and 11(4) of the SEBI Act 1992. We have accordingly, submitted our detailed reply to SEBI and have not received any further communication in this regard,” he said.
In November 2007, RIL was found selling heavily shares of RPL. SEBI’s show-cause notice said that this helped to artificially depress RPL prices, helping a set of RIL group entities to round off their short positions in RPL shares in the derivatives segment, and allowing them to book profits. SEBI’s consent order scheme allows settlement of cases between regulator and entities against which proceedings are on. The order need not include a determination that a violation has occurred; neither does it mean an admission of guilt by the party concerned.
A high-power SEBI committee passes the proposals for consent. All SEBI show-cause notices carry a clause that the parties concerned can take advantage of the consent scheme if they do not want to contest the notice....
Bihar govt issues legal notice to RIL
Posted by : subasuInsider trading issue is not related to treasury sale of stock. This is about artificially depressing prices of RPL the cash market and earning profits in Derivatives. Please read the SEBI notice carefully....
Avoid reliance above 2000....
Posted by : subasu
It should be read as:
RIL always abides by Rules as it understands them and would interpret them....
Avoid reliance above 2000....
Posted by : subasu
It should be read as:
RIL always abides by Rules as it understands them and would interpret them....
Avoid reliance above 2000....
Posted by : subasu
It should be read as:
RIL always abides by Rules as it understands them and would interpret them....
Avoid reliance above 2000....
Posted by : subasu
It should be read as:
RIL always abides by Rules as it understands them and would interpret them....
Avoid reliance above 2000....
Posted by : pss5588
Chief,
Q
RIL always abides by rules!!
UQ
This should count as the joke of the century....
India Inc`s global shopping bag shrinks to 4-yr low: Dealogic
Posted by :
mldey
NEW DELHI: India Inc`s overseas shopping spree has dipped to a four-year low of $27.3 billion so far this year, but a possible acquisition of
LyondellBasell by Reliance Industries would be one of the largest ever by an Indian company, according to deal tracking firm Dealogic.
"Indian acquisitions have dropped to $27.3 billion in 2009 year to date, down 37 per cent compared with the same period last 2008, and the lowest volume since the same period of 2005," it said.
The report says that RIL`s $12 billion acquisition bid for the bankrupt petrochemical firm LyondellBasell will be one of the largest acquisitions by an Indian firm abroad.
On Saturday, RIL said it had offered more than $12 billion in cash to acquire a majority stake in the world`s third largest petrochemical group LyondellBasell Industries.
"Reliance Industries` bid for LyondellBassell would be the second largest since the Tata Group bought the Corus Group for $13 billion in October 2006," Dealogic said.
If the deal materialises, it would be one of the largest international acquisitions by an Indian company and would create a global energy and chemicals powerhouse.
Cross border acquisitions account for 43 per cent of all Indian acquisitions in 2009 so far. So far this year this is the first major announced overseas acquisition by a domestic firm.
Next in line in terms of acquisition volume after the Tata`s Corus deal was by Aditya Birla group firm Hindalco`s $6 billion Novellis acquisition.
The other big ticket merger and acquisitions involving an Indian entity include Vodafone`s acquisition of Hutch Essar for $10 billion, Ranbaxy`s sale to Japan`s Daiichi ($4.5 billion), ONGC-Imperial Energy deal ($2.8 billion), NTT DoCoMo-Tata Tele ($2.7 billion), HDFC Bank-Centurion Bank of Punjab ($2.4 billion), Tata Motors-Jaguar Land Rover ($2.3 billion) and Suzlon-RePower ($1.7 billion).
According to global consultancy firm Grant Thornton, at the end of October, the total number of M&As involving an Indian firm stood at 234 deals with an announced value of $7.66 billion, against 405 deals amounting to $27.12 billion during the corresponding period in 2008.
Analysts say the deal would act as a catalyst to drive India Inc`s shopping spree and would also give a fillip to the slugging M&A activity in the country.
LyondellBasell last year had $50.7 billion in revenues and employed 15,000 people across 19 countries.
LyondellBasell`s American operations and one of its European holding firms filed for bankruptcy protections this year, weighed down by a massive debt and declining demand.
The RIL-LyondellBasell deal may take a few months to conclude. The successful bidder would be decided by the US bankruptcy court
.
LyondellBasell`s global manufacturing operations cover 61 facilities across 19 countries.
...
World oil demand growth to outpace supply in 2010
Posted by : mldey
LONDON/NEW YORK: Growing world oil use will likely outpace the rate of new supplies in 2010, eroding the huge stockpiles of crude which have mounted
around the world since the start of the global economic crisis.
According to a Reuters poll of ten top oil-tracking analysts and organisations, oil demand is predicted to rise by 1.3 million barrels per day (bpd) next year to 85.9 million bpd.
At the same time, the rise in production from outside the Organization of the Petroleum Exporting Countries and output of natural gas liquids (NGLs) from OPEC members is seen growing by just 800,000 bpd in total.
"The key question for prices is supply," Barclays Capital analyst Costanzo Jacazio said. "2010 is really a bridging year, if the economies continue to perform as well as they have been doing during the early stages of the recovery, then I think by 2011 we`ll be seeing the demand numbers at or above where they were in 2008."
...
Anil tops pay chart; Mukesh biggest dividend earner
Posted by : mldey
With a package of over Rs 52 crore in 2008-09, younger brother Anil has topped the list of executives in terms of compensation, while elder Mukesh has emerged as the country`s highest dividend earner at Rs 930 crore, as per rankings compiled by Business India magazine.
In the top-five of compensation chart, Anil is followed by Kalanithi Maran and Kaveri Maran of Sun TV with packages of Rs 37.08 crore each, Madras Cements` P R R Rajha (Rs 28.7 crore) and Jindal Steel & Power`s Naveen Jindal (Rs 28.27 crore), the magazine said in a statement today.
It is the first time that Mukesh does not figure among top-10 executives in terms of compensation package ever since the magazine started compiling the annual list in 2002.
Mukesh has been ranked at 19th position with a package of Rs 15 crore, owing to his voluntary salary cut of 66 per cent announced a few weeks ago.
The magazine noted that Anil has topped the chart "thanks to the Rs 52 crore he collected in 2008-09 as commissions for the previous year".
Business India said that the salary figures could appear huge, but "they are almost pocket change compared to what some of these owner-executives could potential earn and to what they pocket as (tax-free) dividends".
In terms of dividend payouts, second-ranked Azim Premji got Rs 465 crore, which is nearly half the amount for Mukesh, the magazine noted.
HCL`s Shiv Nadar is ranked third (Rs 320 crore), followed by Anil Ambani (Rs 256 crore), Kumar Birla (Rs 202 crore), Sun Pharma`s Dilip Shanghabi (Rs 181 crore), Sun TV`s Kalanithi Maran (Rs 76 crore) and Cipla`s Y K Hamied (Rs 61 crore) in the dividend chart.
The magazine said that last year`s financial crisis hit senior executives as many companies went into austerity drives and cut the annual compensation of many of their executives.
"But many leading executives like Baba Kalyani of Bharat Forge, Onkar Kanwar of Apollo TAyres, Sajjan Jindal of JSW and not to mention Mukesh Ambani took voluntary pay cuts in either salary or commissions and performance bonuses," it added.
For the first time since liberalisation, the salary hikes were in single digits and performance bonuses were also smaller and various studies pointed out at top leaders being the worst affected by the meltdown, the publication noted.
"The slowdown has in fact resulted in a change being introduced in the salaries at the managerial levels ...But executive compensation in India is always a thorny issue, with many companies having the C-level positions occupied by owner- managers," it added.
The magazine said that 64 of the 100 top paid executives are either the controlling shareholders of members of the family that started the companies.
...
In 2008, a bid would have cost RIL a minimum of billion.
Posted by : kiritiIn 2008, a bid would have cost RIL a minimum of $55 billion. ...
In 2008, a bid would have cost RIL a minimum of billion.
Posted by : kiriti
The earlier mega deals like .2 billion of Corus by Tata Steel, billion of Novellis by Hindalco and .3 billion of Jaguar Land Rover by Tata Motors have proved a huge drain on resources for the Indian giants.
In most of such deals, sizes of the acquiring companies were smaller than acquired companies. Acquiring companies leveraged balance sheets of acquired companies to fund the transactions, which created problems, with global economy slipping into recession, a senior merchant banker said.
But in case of RIL, the situation is different. According to Goldman Sachs, the main advantage is that after the downturn, LB has filed for bankruptcy
in US which has pulled down its enterprise value to around billion. Against this - in 2008 - when the equity market was booming, the market capitalization of LB was billion. So, in 2008, a bid would have cost RIL a minimum of billion.
Also, RIL need not leverage LB`s balance sheet to raise funds to finance the deal. According to equity research firm CLSA, RIL is adequately funded with billion in cash and billion in treasury stocks. The company can also raise debts on its own balance sheet.
Merchant bankers feel that the size of the deal should be around billion. Therefore, the actual cash outflow of RIL will depend upon the quantum of stake it buys. CLSA said if RIL acquires 51 per cent, cash outflow will be around billion, which the company can easily fund.
CLSA said - billion would be a fair enterprise value for LB. But, a safety margin is needed to discount the chance of a persistent downturn and environmental litigations. Therefore, it felt that the acquisition would be positive for RIL if the enterprise value remains below billion.
...
RIL offers to withdraw directors’ affidavits on MoU
Posted by : karshinthanks for reading my article....
Reliance reopens 900 gas stations.
Posted by : bhusbhacTaj - Thanks I read all your post. Your vigilance is a big help on this MMB....
