InvestorQ : How will the case of the centre asking RIL to make a disclosure of assets impact the stock price in the short term?
indhumathi Sayani made post

How will the case of the centre asking RIL to make a disclosure of assets impact the stock price in the short term?

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shrinidhi Rajan answered.
2 years ago
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With reference to the central government asking RIL to disclose its assets, the Delhi High Court has sought the Centre's reply on a plea by Reliance Industries seeking recall of orders asking it to file an affidavit on its assets. You will recollect that earlier the court had passed two orders in which it had issued directions to RIL and British Gas (at the behest of the central government) not to dispose of their assets. According to the government, the two companies had allegedly failed to pay $3.85 billion as per an arbitral award in favour of the Centre in relation to the Panna-Mukta and Tapti (PMT) production-sharing contracts.

On November 22, 2019, the High Court directed the two companies (Reliance Industries and British Gas) to file their affidavits on assets at the behest of the centre. The stock has already reacted negatively to the order in the short run. This order was almost a precondition to the approval of RIL’s proposed sale of stake in the refining business to Saudi Aramco, the world’s largest oil company.

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