Finance Ministry wants RIL to sell some gas at old price of $4.2/mBtu
The IFSA elevates them to statutory duties, a breach of which could expose licensed financial entities to punishment. Penalties will be more severe, a Malaysia-based lawyer told Reuters, with many offences carrying a possibility of up to eight years imprisonment and 25m ringgit ($7.86m) in fines. Investors protection should also be boosted by another provision that requires banks to distinguish deposits made for savings from those made for investments. Banks will also need to guarantee the principal amount on savings deposits.
Gas prices were raised in line with the recommendations of the Rangarajan committee, which suggested a formula that takes into account international benchmarks in Europe, Japan and the US as well as the cost of LNG being imported by India. According to Niko Resources , which holds 10% in Reliance’s D6 block, the price would be $8.4 per unit next April when the formula would be applicable. Reliance’s existing gas sales contracts expire at the end of the current fiscal. It has obtained government approval for charging $4.2 for five years ending March 2014.