Government seeks SEBI views on Cairn-Vedanta deal

07 Sep 2010

1

The ministry of petroleum has written to the Securities and Exchange Board of India (SEBI) seeking the market regulator's views on Cairn Energy's $8.48 billion deal to sell a 51 per cent stake in its India venture to metals and mining firm Vedanta Resources.

The deal between Cairn and Vedanta, both UK-based, does not yet have the oil ministry's approval, a condition contingent for the deal to consummate.

The petroleum ministry has also written to Cairn Energy asking it to make formal applications for approval of transfer of ownership in each of the 10 properties where Cairn India holds stake.

Cairn holds a majority 70 per cent stake in the Rajasthan oil fields while state-run Oil and Natural Gas Commission holds 30 per cent equity stake.

Cairn holds equity stake in various other oil and gas asserts in India through 31 subsidiaries - all of them incorporated outside the country.

Also, Cairn has failed to mention in its documents the condition that the deal with Vedanta requires approval from the Government of India, it was pointed out.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more