Capital market regulator, Securities and Exchange Board of India (SEBI) would be probing into the possibility of ‘insider trading’ in shares of Indraprastha Gas (IGL) and other gas transportation companies. The investigation is related to a sharp plunge in the stocks of gas transportation companies on April 10, post Petroleum and Natural Gas Regulatory Board’s (PNGRB) dictate of slashing the network tariff and the CNG compression charge billed by IGL on sale of piped natural gas (PNG) and compressed natural gas (CNG) in Delhi, the spill-over effect of which was felt across entire Oil & Gas space. SEBI is investigating whether people with prior knowledge of the regulator’s order shorted the stocks of IGL and other gas transporters.
PNGRB, which regulates downstream transport tariffs for oil and gas, via its order dated April 9, besides fixing the IGL's pipeline network transportation tariff at Rs 38.58 per million metric British thermal unit (mmBtu) as against Rs 104.05 per mmBtu proposed by the company, slashed the compression prices for CNG to Rs 2.75 a kg from Rs 6.66 a kg submitted by IGL, with retrospective effect applicable from April 1, 2008.
Reacting to the PNGRB order, IGL, which has been on constant warpath with the oil regulator questioning its jurisdiction to decide on such matters, has approach the Delhi High Court, challenging the constitutionality and legality of the powers of the PNGRB to fix the tariff. However, PNGRB issued an order last week determining Network Tariff and Compression Cost for IGL’s city gas distribution network for Delhi region.
| Company Name | CMP |
|---|---|
| GAIL India | 157.80 |
| Gujarat Gas | 362.60 |
| Indraprastha Gas | 169.25 |
| Mahanagar Gas | 1125.45 |
| Adani Total Gas | 632.90 |
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