Did Reliance Industries get away lightly in the unlawful gains case?

More punitive action was needed against the company and the management, say experts

 

 

Latest News -  Securities and Exchange Board of India (Sebi) on Friday delivered its verdict in the decade-old unlawful gains case involving the country’s second-biggest company, Reliance Industries. The capital market   regulator has directed the Mukesh Ambani-led company to disgorge (give up) Rs 447 crore, with interest of 12 per cent per annum since November 2007, it made “illegally”.

Besides the high interest levied, the only punitive action is a one-year ban from dealing in the futures and options (F&O) segment by the company. So has the company gotten away lightly? 

Reliance Industries Unlawful Gains Case And What The Fraud Is All About

Governance firm In Govern’s Managing Director Shriram Subramanian says that the punitive action should have been stricter.

“Sebi needs to be more tough and proactive in such cases. It has taken almost 10 years to come out with this order, which doesn’t contain any penalty. This could set a wrong precedent for companies and market participants who brazenly violate regulations. Banning the company from the F&O segment will not have any impact on the company. Apart from the disgorgement amount, there has to be a penalty to serve as a deterrent to all market participants,” he said.

JN Gupta, former executive director, Sebi, and founder of proxy advisory firm SES, says that besides the company, those running the show should also be held responsible.(read more...)

R-Com, Aircel create 4th-largest telco

In the biggest consolidation deal in India's telecom sector, Anil Ambani-led Reliance Communications and Maxis Communications, promoters of Aircel, on Wednesday said they would merge their wireless businesses to form the fourth-largest telecom operator in the country.

R-Com will demerge its wireless business and transfer it to the new entity, while the standalone business will focus on the enterprise segment and data centre businesses. Sistema will continue to hold 10 per cent in standalone R-Com. R-Com's shares ended the day three per cent higher at Rs 50.

Both R-Com and Maxis will hold 50 per cent each in the new entity.

With 171 million subscribers and a revenue market share of over 11 per cent, the new entity will have a better shot at survival, as competitive intensity picks up.

The new entity will have an asset base of over Rs 65,000 crore ($9.7 billion) and net worth of Rs 35,000 crore ($5.2 billion). It will enjoy substantial benefits of scale driving significant revenue growth, and capex and opex synergies with an NPV of  read more..

ALSO READ: RCom profit up 5.8%

ALSO READ: RCom & Aircel come together to create India's 4th largest telco

ALSO READ: How to get Jio SIM & 3-month free data offer

How to get Jio SIM & 3-month free data offer

With free voice calls - for both local and roaming - and cheap data plans, Reliance Jio has unleashed a price war in the telecom sector. But how do you go about getting one, how do you install one, what devices are compatible, what is VoLTE... Read on to know all about Jio...

Reliance Industries caused a stir in the telecom industry when it made an announcement on September 1, during the company’s annual general meeting in Mumbai, offering free voice calls - both local and roaming - and data at cheap prices of Rs 25-50 per gigabyte (GB) through Reliance Jio Infocomm. On September 5, the fourth-generation mobile phone service was launched for public subscription.

The Mukesh Ambani-promoted company promised consumers voice calls on Jio would always be free. It announced 10 data tariff plans, starting at Rs 19 a day for occasional users, to Rs 4,999 a month for heavy data users. The most popular is the Rs 149 a month plan for low-data users. At an average data price of Rs 50 per GB, the data plans are touted to be amongst the lowest in the world.

1. Supporting devices  
2. How to get a Jio connection?
3. How to activate a Reliance Jio 4G SIM
4. Cut the queue with Aadhaar
5. Jio deconstructed
6. VoLTE face
7. Value-add services
8. Devices supporting Jio

Here’s a list of plans currently offered by Jio...read more..