STOCK MARKET BSE NSE

Karunanidhi asks PM to accept TN government's proposal on NLC

Published: 12th July 2013 03:03 PM  |   Last Updated: 12th July 2013 03:03 PM   |  A+A-

karunanidhi -PTI
By PTI

Backing Tamil Nadu government's offer to buy the five per cent shares in Neyvlei Lignite Corporation that the Centre proposes to disinvest, DMK president M Karunanidhi urged Prime Minister Manmohan Singh to accept the proposal and treat it as a "public purchase."

Karunanidhi told Singh in a letter that the Jayalalithaa-led government's offer had come in the wake of workers' agitation and "unanimous and stiff opposition," by all political parties and people in the state.

"Since the Government of Tamil Nadu has now come forward to purchase 5 per cent of shares of NLC, I request you that the Government of India may accept the proposal, and consider the said sales as public purchase and not as institutional purchase," he said.

The letter, released by the DMK headquarters here, was handed over to the Prime Minister by party's Parliamentary Party Leader TR Baalu in Delhi today.

Karunanidhi said Rule 19 (7) of Securities Contracts (Regulations) Rules 1967 stated SEBI at its own discretion or on the recommendation of a recognised stock exchange, waive or relax strict enforcement of requirements pertaining to rules.

He sought that in the first place, NLC may be exempted under this provision which will be a "lasting solution" to the ongoing issue. "Or,if it is found that there is no other option, as a last resort, 5 per cent shares may be sold to Government of Tamil Nadu institutions," he said.

The state government companies (like SIPCOT and TIDCO) were neither promoters nor subsidiaries of NLC, and therefore they may be treated as 'public' and NLC shares sold to them, he said.

"If SEBI grants such exemptions, then the issue will be settled and the agitating employees can also be convinced to withdraw their strike," he said, seeking Singh to "favourably" consider his request with a view to ensuring industrial peace in NLC.

Last month, Jayalalithaa had written to Singh, suggesting that Centre could sell five per cent of its shareholding in NLC to one or more of the state's PSUs --Tamil Nadu Industrial Development Corporation (TIDCO), State Industries Promotion Corporation of Tamil Nadu (SIPCOT) and Tamil Nadu Industrial Investment Corporation (TIIC).

These PSUs came within the ambit of 'Qualified Institutional Buyers' and fell under the meaning of "public" defined under relevant SEBI rules, she had said.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp