Sebi for warning system on oil finds

The market regulator favours a warning system to alert investors on disclosures pertaining to oil and gas being made by companies. The Securities and Exchange Board of India (Sebi) has asked the petroleum ministry to formulate a system to announce premature declarations or non-disclosure of an oil and gas discovery by a company. This is because oil/gas discoveries are price-sensitive market information which can impact the share prices of the companies involved. As per the listing norms, any price sensitive information will have to intimated to the bourses (investors) first. The Sebi move follows the comments made by Director General of Hydrocarbons (DGH) V.K. Sibal seeking action against ONGC for alleged non-disclosure of a gas find. In a letter to the Petroleum Ministry, Sebi Chairman M. Damodaran said “It would be useful if the DGH or the ministry puts in place a mechanism by which Sebi is alerted whenever there is a premature disclosure or a non-disclosure of development that merits disclosure.”