- Corporate Governance
- Foreign Institutional Investors
- Global Economic Crisis
- Insider Trading
- Interesting News Sightings
- Investing Approaches
- Investing Themes
- INVESTOR MISTAKES
- Mutual Funds
- Oil & Gas Exploration
- Refining & Petrochemicals
- Union Budget 2014/15
- When the Heart Explodes through the helpless Mind
Just a few days ago I had blogged that the IOC Disnvestment on Monday will be just a formality….But Monday’s Global Stocks Chinese Contagion Capitulation saw a very very poor response to the IOC Disinvestment
It’s a real shame that the Government yet again had to direct/order LIC to bail it out yet again…it would have been a wise idea to defer the issue rather than order LIC to invest in 86% of Issue of Rs 9379 crs bat Floor Price of Rs 387 !…. shoots up LIC holding in IOC by a whopping 8.59% from 2.52% to 11.11%….it’s another issue that IOC is past Rs 400 today on signing a refinery deal with Nepal
This then sadly was not a real disnvestment just as it was not for a similar 10% last year too when Oil India & ONGC were ordered to pick up 5% each at Rs 220 .,,,just another continuing story of government selling from one PSU to another !
Its no wonder LIC does not want to go public ! and neither is the Government inclined to make it public !
Raises Huge Corporate Governance Issues on Investment Decision Making,Accountability and Tranparency
It’s happening for decades now….UTI was first the Big Market Daddy in the 1970’s to 1990’s before India opened out to FIIs and Other Mutual Funds that saw UTI losing it’s war of words with SEBI to be brought under it’s regulations….in the late 1980’s the UTI Chairman then had opened out to me in a candid interview on UTI’s Investment & Disinvestment Decisions Process,sometimes buying a company’s shares through one broker and selling the same company’s share on the same day through another !, and Competition emerging from other Mutual Funds sponsored by PSU Banks that were allowed to be set up .It was to be carried in a leading Magazine…it was explosive and so I send him the transcript to confirm he was not being misquoted….Phew! he panicked and asked me not to carry the Interview….had told him it would be the Editor’s call….it was not carried finally !
LIC yet stays out of SEBI regulation though its the Biggest Shareholder in Indian Equities and functions like a Government Proxy
Who’s to Question LIC !…or for that matter the Government ?…and the Disinvestment Secretary boasts of how with this Disinvestment it’s a been the best first half of the year in the last many years for Disinvestment Proceeds !
It’s the Cash Cow for the Government to lead and order the flow wherever it conveniently wants Investments !