No investor related grievance against ONGC

New Delhi, Oct 14 (UNI) Contrary to reports, state -owned Oil and Natural Gas Corporation (ONGC) today stressed that no investor complaints exist against the Corporation in the National Stock Exchange (NSE) or are pending for settlement.

Reacting to media reports that a large number of investor complaints were filed against ONGC in the NSE, the Corporation said ''addressing investor grievances is one of the prime focus areas of corporate governance practices being pursued by ONGC.'' As an integral part of its comprehensive investor relationship, ONGC has an on-line grievance handling mechanism on its corporate web-site, for real-time settlement of investor complaints.

On verifying with NSE, it has been found that the reported complaints relate to the 'Offer of Sale' of 10 per cent Equity Shares of ONGC by the Government of India in March 2004.

No other investor complaints are pending against ONGC, barring issues related to mishandling by the Registrar during this ONGC Public Offer by the Government of India in March 2004.

The ONGC management has clarified on various occasions earlier that the entire Public Issue of 10 per cent Equity shares of ONGC in March 2004 was made by the Government of India. The Registrar to this Issue was also appointed by the government of India. After the share allocations were finalised on 28th March 2004 in consultation with the designated Stock Exchange NSE (Mumbai), the Registrar erroneously uploaded a wrong file (containing application data of some categories, which were not approved), based on which shares were allocated.

Though the issue related to a Sale by the Government of India, '' as a proactive measure of good governance '' ONGC went all out to safeguard the interests of investors. ONGC set up help-lines in all major cities immediately and followed it up with advertisement campaign in leading national newspapers to facilitate settlement of investor grievances.

To cope up with this issue, the services of another Registrar were engaged to attend to the complaints and rectify errors proactively.

Initially, around 50,000 complaints were received. Due to constant endeavour by ONGC - continuous interactions with the Department of Disinvestment, liaisoning with the then Registrar appointed by the Government of India, newspaper advertisements for retail investors and setting up of help-lines - more than 99 per cent of the complaints have been resolved.

Interactions with Department of Disinvestment and Registrars are being continued vigorously. Recently, an assurance has been obtained from the Registrar that the Investor Complaints relating to that Public Issue will be settled within a month.

''No investor grievance relating to ONGC transactions are pending for settlement,'' the Corporation said.

UNI RT RA BS1615