The Hindu Business Line : DGH to report gas find to SEBI

ONGC may have to do some explaining on its recent announcement on gas finds in the Krishna-Godavari Basin, with the Director General of Hydrocarbons, Mr V.K. Sibal, proposing to take it up with the Petroleum Ministry and the the Securities and Exchange Board of India (SEBI).

Mr Sibal told Business Line that he planned to report about ONGC to the SEBI for not notifying the market regulator about the gas find. Coming down strongly on ONGC, he alleged the oil major was influencing the market by first informing the media.

"I'll write to the Securities and Exchange Board of India about ONGC's failure to inform us on new discoveries and instead informing the media to manipulate the scrip," he said.

His letter to SEBI would focus on the company's announcements on recent gas finds without any certification from the DGH, he added.

According to the production-sharing contract signed between companies and the Government, any discovery has to be appraised by an independent body and certified by the DGH before being made public.

When asked about the ONGC Chairman and Managing Director, Mr Subir Raha's concerns on the alleged `intimidation' by Government nominees on the company's board, Mr Sibal said, "I was appointed as a Government nominee on ONGC board by a Presidential directive on April 4, but so far I've not attended a single board meeting of the company as I was never invited."

ONGC has questioned his nomination to the board citing conflict of interest — as DGH is a regulatory body.

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