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Journalism of Courage
The Securities and Exchange Board of India SEBI, we reliably learn, is all set to send notices to both the Ambani brothers over the controversy generated by the manner in which details of the split and demerger of group companies were made known to shareholders. And whether the announcements met with all the requirements of good governance that both brothers have sworn by in the last nine months. The funny thing about governance is that it is not about making allegations but following up on details. For instance, remember the Reliance Capital board meeting on April 25, when Amitabh Jhunjhunwala, an Anil Ambani confidante, raised a storm over the sale of its indirect shareholding in IPCL? He put in a dissent note and refused to sign the accounts. Then on May 5, Anil Ambani had refused to sign the accounts of Reliance Industries alleging absence of 8220;relevant information and disclosure8221;. At the August 3 board meeting, when Anil stood up as the first speaker after the accounts were introduced, he was expected to reiterate his objections. Instead, he made an emotional speech in which he even expressed confidence in brother Mukesh8217;s leadership of Reliance. Last week, Reliance Capital held its board meeting at Jamnagar. But, shareholders say the director who dramatically dissented on April 25 and refused to sign the accounts, was quiet this time. Will the regulators now ask the questions that the directors forgot?
Right information
Motivated leaks?
On Thursday and Friday last week, a business television channel repeatedly telecast an unconfirmed report that Geojit Financial Services may acquire UTI Securities. Early Thursday morning a SMS tipping service had already flashed this news. Needless to say the hyped up report saw the stock jump 20 per cent and hit the upper circuit. But Geojit responded to a stock exchange query with a categorical denial saying, 8220;We are not aware of the basis for the said news. Neither have we approached UTI Securities nor they have approached us in connection with the acquisition as of now.8217;8217; But the manipulators wouldn8217;t let off. The next day, the SMS tip service tried to push another fake report saying that an Arab director was to hike his stake in the company. C.J. George, who heads Geojit is completely perplexed at the reports and strongly refutes them. 8220;We are looking at normal growth opportunities, but they are at a preliminary stage.8217;8217;
Close connections
Now that the Specified Undertaking of UTI UTI-I is to be wound up, the government has to find ways to sell its assets. Among these is a valuable 10 per cent stake in ITC, which has been coveted by its biggest investor BAT Industries of the UK for almost a decade. But the big surprise, say reliable sources, is that the Finance Ministry has asked S.B. Mathur, Administrator of UTI-I, to discuss the sale with the ITC chairman. What makes the situation even more curious is that S.B. Mathur is also Life Insurance Corporation8217;s nominee on ITC. Did someone say conflict of interest?
suchetadalalyahoo.com
