Mumbai, August 20
The government has initiated a forensic audit at the state-run Oriental Bank of Commerce (OBC) and Dena Bank after unearthing of a suspected scam, wherein the lenders allegedly misappropriated funds worth Rs 436 crore from their fixed deposit customers.

“A forensic audit has already been ordered,” Financial Services Secretary GS Sandhu told reporters here today, when asked about the alleged scam, adding some suspensions have been initiated by the authorities in this regard.

He, however, was quick to add that it is a case of aberration at the individual officer level and not systemic.

“These are instances which have happened at the lower level, at the branch level because of lack of due diligence or non-adherence to the norms and procedures,” Sandhu said.

The lenders are alleged to have indulged in siphoning off the money (Rs 180 crore by OBC and Rs 256 crore by Dena Bank) received as fixed deposits.

“Persons responsible are being taken to task, there have been some suspensions, transfers, and the investigations are on,” Sandhu told reporters at an event organised by real estate body Nardeco.

The Finance Ministry official added that the government has also flagged the issue of risk management by state-run banks, saying DGM and GM-rank officers will have to undergo a course on risk management before being considered for promotion.

The development comes within a fortnight of the arrest of Syndicate Bank chairman and managing director SK Jain in a corruption case for allegedly receiving Rs 50 lakh from Bhushan Steel and another company for expanding their credit limit.

Newly-appointed Reserve Bank Deputy Governor SS Mundra took serious cognisance of the matter, saying greater sensitisation of the officers about regulations is required.

“There are instances of individual failures but there is a certain process for it. We would certainly look into it.

Chandigarh, August 20
Connect Broadband today launched Connect Safe, a security system for all smart devices to its customers across Punjab. The multi-device data security software plan, which will run on phone, tablets and computers, will provide parental control over children by blocking access to certain sites, providing safety against theft and also secure access to net banking.

The product has been developed by Finland based F-Secure Corporation. Speaking on the tie-up with F-Secure, Arvind Bali, director and CEO, Connect Broadband and Videocon Telecom, said, “Connect Safe blocks hackers to maintain privacy of data, safeguards the internet for children on PCs, tablets and Android phones thereby reducing service interruptions and security hassles.”

For utilsing this service, the Connect Broadband users will have to register the other devices and the app will run freely on smartphones with all telecom service providers.

New Delhi, August 20
The Oil Ministry is considering ordering Reliance Industries (RIL) to stop selling KG-D6 crude oil to its Jamnagar refinery and instead sell it to Chennai Petroleum Corp Ltd (CPCL) at lower rates.

The Production Sharing Contract (PSC) mandates producers to sell crude oil at the best available market rate so as to ensure highest profit petroleum and royalty to the government.

RIL, which sold crude oil from the MA oil field in the predominantly gas-rich KG-D6 block to CPCL during first five years of production on negotiated terms, floated a tender for sale of 2.5 million barrels of oil in 2014-15.

Jamnagar refinery of RIL won the tender as CPCL offered a pricing formula that was about $4-5 per barrel less than the formula quoted by the private sector refiner.

The Oil Ministry is now of the view that sale of crude oil is to be done on arms length basis and “therefore cannot be done to an affiliate,” a senior ministry official said.

It believes RIL’s Jamnagar refinery would not qualify for this bidding as per PSC provision and the company would have to go for the next option which in this case is CPCL. Also, RIL may go for a fresh tender for getting an arms length price.

The official said in the interim period, the ministry is considering directing RIL to stop sale to its affiliate Jamnagar refinery and sell it to CPCL at the price quoted by it.

RIL, however, refuted this view saying that “there is no restriction in the PSC that the oil and gas cannot be sold to related party as long as an arms-length process is followed”.

While higher price would give government more profit petroleum and royalty, CPCL being a subsidiary of IOC, does not pay any dividend to government on its profit. — PTI

New Delhi, August 20
The government today issued draft guidelines to give the commodity markets regulator, Forward Markets Commission (FMC) more powers to effectively regulate the intermediaries in the commodity derivatives markets.

Unlike capital markets regulator SEBI, FMC is not an autonomous body. The government is in the process of strengthening the FMC, especially after the Rs 5,600- crore payment scam surfaced at National Spot Exchange Ltd (NSEL).

“A need was felt to strengthen the regulatory framework by empowering the FMC to effectively regulate the intermediaries of the commodity derivative markets. To enable this, it has been decided to notify appropriate rules by the Central Government,” a Finance Ministry statement said.

Among the guidelines, the government has proposed to strengthen the FMC with the power to cancel, suspend and debar the registration of an errant intermediary.

FMC would also have the right to inspect books and accounts of an intermediary and take disciplinary actions. The ministry has proposed mandatory registration of intermediaries with FMC and procedure for the same.

Public comments have been sought on the draft rules within 21 days.

BRIEFLY

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