NSEL crisis: EOW arrests Lotus Refineries chief Arun Sharma
mumbai: The Economic Offences Wing (EOW) of the Mumbai Police on Monday arrested Lotus Refineries chairman and Managing Director Arun Sharma in connection with the ongoing payment crisis at the crippled National Spot Exchange (NSEL). The EOW has already arrested four accused — Anjani Sinha, Jai Bahukhandi, Amit Mukherjee and Nilesh Patel — in connection with the Rs 5,574.35 crore payment default. Interestingly, Sharma had earlier lodged a case against NSEL seeking Rs 2,500 crore from the exchange, while NSEL claimed the company owed Lotus Refineries Rs 250 crore. However, it eventually turned out that Lotus Refineries is one of the biggest defaulters. As per the pay-in/pay-out statement of the NSEL, the net outstanding of Lotus Refineries is Rs 252.56 crore, of which as on October 15, the company had cleared dues amounting to Rs 8lakh.
RBI waives NoC criteria for NRI investment
mumbai: The Reserve Bank has waived the requirement of No Objection Certificate (NoC) with regard to share transfer from residents to non-residents where the investee company is in the financial services domain. On a review, it has now been decided that the requirement of NoC(s) will be waived from the perspective of Foreign Exchange Management Act, RBI said in a notification. However, it said “any ‘fit and proper or due diligence’ requirement as regards the non-resident investor as stipulated by the respective financial sector regulator should have to be complied with.” As per existing norms, the NOCs are obtained from the respective financial sector regulators or regulators of the investee company as well as transferor and transferee entities. In a separate notification, RBI said, any authorisation such as Advance Authorisation (AA) / Duty Free Import Authorisation (DFIA) has be utilised for import of gold meant for export purposes only and no diversion for domestic use shall be permitted.
SAT adjourns RIL insider-trading case
new delhi: The Securities Appellate Tribunal (SAT) today put off the hearing in Reliance Industries’ appeal against markets regulator Sebi in the 2007 insider-trading case to November 15. At the last hearing on October 11, SAT had suggested Sebi to consider the RIL application for a consent settlement that allows companies and individuals to settle disputes by paying a fine without admission or denial of the alleged wrongdoing. Earlier in the day today, the tribunal adjourned the hearings after the RIL side said that their senior counsel Janak Dwarakadas would be present for the afternoon hearing. But since Dwarakadas could not make it on time, the SAT adjourned the case for next Friday, saying it would like to hear the case from him. Sebi lawyer Darius Khambata said the regulator has already given RIL the three documents it had sought for inspection related to the alleged insider trading probe.
W’hardt endorses European listing of Bio AG
new delhi: Drug maker Wockhardt has said its board has endorsed the decision of its Switzerland-based arm Wockhardt Bio AG to undertake a European listing. “In order to meet long term aspirations of the company and its group, the Board of Directors of Wockhardt Ltd have endorsed the decision of the Board of Wockhardt Bio AG, Switzerland, to undertake a European Listing with a relatively modest dilution of approximately 5 per cent of shareholding of Wockhardt Bio AG, Switzerland,” Wockhardt Ltd said in a filing to BSE. “Wockhardt Ltd is a global pharmaceutical an biotechnology major and has a business of over 75 per cent outside India. The holding company, for undertaking this is primarily Wockhardt Bio AG, Switzerland,” it added.
No market abuse by Delhi, Mumbai airports
new delhi: Competition watchdog CCI has dismissed complaints that Delhi and Mumbai international airports abused their dominant market position with regard to vehicle parking rates charged by them. The ruling follows a complaint filed by Citizen Grievances Redressal Foundation that had alleged that parking rates at Mumbai International Airport and Delhi International Airport were excessively high compared to those at Kolkata and Chennai airports. In an order dated November 6 and published today, the Competition Commission of India (CCI) said: “…merely because the parking prices of opposite parties (Mumbai and Delhi airports) are higher than other airports it is not a fit case for issue of directions for causing an investigation to be made by Director General”. According to CCI, Mumbai and Delhi airports were owned and run by joint ventures formed by Airport Authority of India AAI with private parties which were free to fix rates for non-aeronautical services, including vehicle parking.