Tamil billionaire's arrest puts Sri Lanka on guard

Colombo: A Sri Lankan-born billionaire's arrest in the largest US hedge fund insider trading case triggered new scrutiny on Monday in his native country over the possibility his money found its way to Tamil rebels.

US authorities on Friday charged Raj Rajaratnam, the 52-year-old founder of the Galleon Group hedge fund, and others with making up to $20 million in illegal profits through a network of secret informants.

The arrest sent ripples through Rajaratnam's native Sri Lanka, where he is at once viewed with admiration for his success and suspicion because of at least $5 million US records show he gave to the Tamil Rehabilitation Organization (TRO).

Rajaratnam has not been charged with any crime in Sri Lanka, nor has the United States charged him in the case of the TRO.

The TRO's funds were frozen in both countries after they were found to have been channelled to the separatist Liberation Tigers of Tamil Eelam (LTTE), defeated by the army in May to end a 25-year war.

But both the central bank, responsible for tracking financial crimes, and the Sri Lankan Securities and Exchange Commission said they were probing Rajaratnam and his dealings.

"The TRO investigations are continuing. It's not clear yet. The involvement of the Galleon fund with funding the TRO is also being probed," Central Bank Governor Ajith Nivard Cabraal told Reuters in Jaffna.

In a sign of Rajaratnam's influence on the Sri Lankan market, either as an investor or through Galleon Group, the Colombo Stock Exchange had its biggest intra-day drop in five years before recovering to close down 1.56 percent.

Higher economic growth hopes, more market liquidity, a $2.6 billion International Monetary Fund loan, an upgraded rating outlook and foreign inflows have all boosted investor confidence since the end of the war.

The Sri Lankan foreign ministry had passed an intelligence dossier on Rajaratnam to US authorities in 2007, around the time the TRO was being investigated by the U.S. Treasury, two Sri Lankan officials familiar with the matter said.

The United States, Sri Lanka and Britain all have put the now-defeated LTTE on their banned terrorist organisation lists.

The Sri Lankan stock market regulator said it had no suspicion of any untoward dealings by Rajaratnam in its market, but said it would investigate his trades nonetheless.

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Tamil billionaire's arrest puts Sri Lanka on guard

Colombo: A Sri Lankan-born billionaire's arrest in the largest US hedge fund insider trading case triggered new scrutiny on Monday in his native country over the possibility his money found its way to Tamil rebels.

US authorities on Friday charged Raj Rajaratnam, the 52-year-old founder of the Galleon Group hedge fund, and others with making up to $20 million in illegal profits through a network of secret informants.

The arrest sent ripples through Rajaratnam's native Sri Lanka, where he is at once viewed with admiration for his success and suspicion because of at least $5 million US records show he gave to the Tamil Rehabilitation Organization (TRO).

Rajaratnam has not been charged with any crime in Sri Lanka, nor has the United States charged him in the case of the TRO.

The TRO's funds were frozen in both countries after they were found to have been channelled to the separatist Liberation Tigers of Tamil Eelam (LTTE), defeated by the army in May to end a 25-year war.

But both the central bank, responsible for tracking financial crimes, and the Sri Lankan Securities and Exchange Commission said they were probing Rajaratnam and his dealings.

"The TRO investigations are continuing. It's not clear yet. The involvement of the Galleon fund with funding the TRO is also being probed," Central Bank Governor Ajith Nivard Cabraal told Reuters in Jaffna.

In a sign of Rajaratnam's influence on the Sri Lankan market, either as an investor or through Galleon Group, the Colombo Stock Exchange had its biggest intra-day drop in five years before recovering to close down 1.56 percent.

Higher economic growth hopes, more market liquidity, a $2.6 billion International Monetary Fund loan, an upgraded rating outlook and foreign inflows have all boosted investor confidence since the end of the war.

The Sri Lankan foreign ministry had passed an intelligence dossier on Rajaratnam to US authorities in 2007, around the time the TRO was being investigated by the U.S. Treasury, two Sri Lankan officials familiar with the matter said.

The United States, Sri Lanka and Britain all have put the now-defeated LTTE on their banned terrorist organisation lists.

The Sri Lankan stock market regulator said it had no suspicion of any untoward dealings by Rajaratnam in its market, but said it would investigate his trades nonetheless.

Read more »

Ambani gas row hearing to start in SC today

Mumbai: India's billionaire Ambani brothers face off in the country's top court this week over a gas pricing case with all guns blazing: lined on each side are a battery of India's highest paid legal brains.

The Supreme Court will on Tuesday start hearing arguments in the case between Reliance Industries, headed by Mukesh Ambani, and Reliance Natural Resources, led by Anil Ambani, over a deal to sell gas to RNRL at below-market rates as per a family settlement.

This is not the first time the brothers, sons of legendary businessman Dhirubhai Ambani, have fought over business interests that span oil and gas, retail, telecoms, entertainment, financial services and infrastructure since a 2005 settlement brokered by their mother Kokilaben.

Two years ago, talks between Anil's Reliance Communications and South Africa's MTN Group to create a top-10 global telecoms firm were scuppered by Mukesh's claim to a right of first refusal on the Indian mobile firm's shares.

The brothers played joint hosts at a recent 75th birthday party for their mother, raising hopes they may bury the hatchet. Top Government officials and a lower court have suggested they go back to their mother to resolve the gas dispute.

• Watch: Ambani Vs Ambani in Supreme Court

But the row over gas pricing, which analysts say highlights India's uncertain regulatory environment, has prompted a near-daily barrage of words, including an outburst by Anil at a shareholders' meeting, and newspaper advertisements accusing the petroleum ministry of favouring Reliance Industries.

Anil has unexpectedly offered to reconcile with Mukesh and resolve their differences, but Reliance Industries has argued the row goes beyond a mere family squabble.

Analysts say the court must also take a broader view of the Ambani settlement of 2005, which was never made public.

"Who knows what else is in there? This kind of fighting is very damaging to shareholders; they have a right to know the risks," said Arun Kejriwal, director at research firm KRIS.

WHAT'S AT STAKE?

The gas, which Reliance Natural wants at almost half the Government-set rate of $4.2 per million metric British thermal unit (mmBtu), comes from the vast Krishna Godavari basin off India's east coast that is operated by Reliance Industries.

The field is the country's biggest gas find and is expected to nearly double India's gas output when production is at full throttle at 80 mmscmd.

Energy-hungry India, which wants to reduce its dependence on foreign oil and become a new frontier for oil and gas exploration, has showcased the discovery in the KG basin to attract foreign investors.

But analysts worry the Ambani dispute is putting off foreign investors, with possible Government interference in the pricing and marketing of gas raising investment risk in a politically sensitive resource.

Read more »

Ambani gas row hearing to start in SC today

Mumbai: India's billionaire Ambani brothers face off in the country's top court this week over a gas pricing case with all guns blazing: lined on each side are a battery of India's highest paid legal brains.

The Supreme Court will on Tuesday start hearing arguments in the case between Reliance Industries, headed by Mukesh Ambani, and Reliance Natural Resources, led by Anil Ambani, over a deal to sell gas to RNRL at below-market rates as per a family settlement.

This is not the first time the brothers, sons of legendary businessman Dhirubhai Ambani, have fought over business interests that span oil and gas, retail, telecoms, entertainment, financial services and infrastructure since a 2005 settlement brokered by their mother Kokilaben.

Two years ago, talks between Anil's Reliance Communications and South Africa's MTN Group to create a top-10 global telecoms firm were scuppered by Mukesh's claim to a right of first refusal on the Indian mobile firm's shares.

The brothers played joint hosts at a recent 75th birthday party for their mother, raising hopes they may bury the hatchet. Top Government officials and a lower court have suggested they go back to their mother to resolve the gas dispute.

• Watch: Ambani Vs Ambani in Supreme Court

But the row over gas pricing, which analysts say highlights India's uncertain regulatory environment, has prompted a near-daily barrage of words, including an outburst by Anil at a shareholders' meeting, and newspaper advertisements accusing the petroleum ministry of favouring Reliance Industries.

Anil has unexpectedly offered to reconcile with Mukesh and resolve their differences, but Reliance Industries has argued the row goes beyond a mere family squabble.

Analysts say the court must also take a broader view of the Ambani settlement of 2005, which was never made public.

"Who knows what else is in there? This kind of fighting is very damaging to shareholders; they have a right to know the risks," said Arun Kejriwal, director at research firm KRIS.

WHAT'S AT STAKE?

The gas, which Reliance Natural wants at almost half the Government-set rate of $4.2 per million metric British thermal unit (mmBtu), comes from the vast Krishna Godavari basin off India's east coast that is operated by Reliance Industries.

The field is the country's biggest gas find and is expected to nearly double India's gas output when production is at full throttle at 80 mmscmd.

Energy-hungry India, which wants to reduce its dependence on foreign oil and become a new frontier for oil and gas exploration, has showcased the discovery in the KG basin to attract foreign investors.

But analysts worry the Ambani dispute is putting off foreign investors, with possible Government interference in the pricing and marketing of gas raising investment risk in a politically sensitive resource.

Read more »

Cricket and Commonwealth

London: Cricket and the Commonwealth are ‘two institutions that inter-link and endure’, said former United Kingdom Prime Minister Sir John Major at a recent dinner to celebrate the 60th anniversary of the Modern Commonwealth at Lord’s Cricket Ground.

Sir John spoke of the bonds of shared Commonwealth values, many of which find expression in cricket. He also spoke of nations defining and advancing themselves through the “magic [of cricket] that was a guiding light for the dispossessed and the disenfranchised”.

Said Sir John: “Over many decades, cricket has, for some, been an escape from obscurity to fame, poverty to comfort, exclusion to inclusion.

“Cricket and the Commonwealth continue to march together. The intricacies of both are difficult to explain, but both continue to thrive. They are linked by history, and have evolved over time to reflect our shared interests, common goals, sense of fair play – and sense of fun.”

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Cricket and Commonwealth

London: Cricket and the Commonwealth are ‘two institutions that inter-link and endure’, said former United Kingdom Prime Minister Sir John Major at a recent dinner to celebrate the 60th anniversary of the Modern Commonwealth at Lord’s Cricket Ground.

Sir John spoke of the bonds of shared Commonwealth values, many of which find expression in cricket. He also spoke of nations defining and advancing themselves through the “magic [of cricket] that was a guiding light for the dispossessed and the disenfranchised”.

Said Sir John: “Over many decades, cricket has, for some, been an escape from obscurity to fame, poverty to comfort, exclusion to inclusion.

“Cricket and the Commonwealth continue to march together. The intricacies of both are difficult to explain, but both continue to thrive. They are linked by history, and have evolved over time to reflect our shared interests, common goals, sense of fair play – and sense of fun.”

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I am the champion: Jenson Button

SAO PAULO: With a British flag proclaiming ‘Great Button’ draped over his shoulders, Jenson Button stood and repeated over and over again four of the sweetest-sounding words in the English language.

“I am the champion,” the 29-year-old said, shouted and roared to anyone in earshot after making a lifelong dream come true in the Brazilian Grand Prix on Sunday with a fifth-place finish which he said felt like a victory. Australian Mark Webber won the race, followed by Robert Kubica and third-placed Lewis Hamilton.

The fifth-place was good enough to give Button an insurmountable 15-point lead in the drivers’ standings ahead of the season-ending race in Abu Dhabi on November 1.

“I am the world champion, baby, and I’m not going to stop saying it.

“This race for me was the best race I’ve driven in my life, probably. I know it’s because of the emotion involved with it but also because I knew I had to make it happen.”

Bawling away

He bawled “We Are The Champions” over the team radio on his slowing down lap, leaped from the car after parking up and sprinted to the pits to hug his father John, sobbing like a child, and embrace mechanics.

“I couldn’t get him off me,” said Button senior, clutching a champagne flute and gently swaying like a man in dreamland with a look of disbelief across his craggy features.

“He was like a limpet, crying his eyes out. He was just saying ‘I am world champion ’ — well, screaming it — non stop.”

The sleepless nights and inner torment, with critics accusing him of allowing the crown to slip through his fingers while others questioned whether he would be a worthy champion, were swept away.

“It’s more than relief. You don’t win the world championship and feel relief,” said the Briton, who less than a year ago had wondered whether he had a future in Formula One after Brawn’s predecessors Honda pulled out.

“This is the end of the fairytale,” he said.

“All of the bad memories and the good memories go through your mind, not just from this year but from previous years in the sport.

Stressful

“The last few races were pretty stressful for me.

“Also I read too many papers and magazines, so there were some negative comments...there’s been a lot of good stuff written about us this year as well and so there should be. This team has done staggeringly well.

“I don’t think there has been a season like it in Formula One. So it’s great to sit here as world champion and I personally think I thoroughly deserve it. I am it. I am a world champion. I’m going to keep saying that all night.”

Button revealed that he had felt physically sick after Saturday’s setback, sitting in his room as closest rival and team mate Rubens Barrichello took pole position for his home Grand Prix.

Button recognised it had been a stressful end to the season.

“I have come out on top. I am world champion. What other words can I use?,” he said. “It’s getting boring. No it’s not...I am going to enjoy this moment like you would not believe.

“You can do that when you’ve won, can’t you?”

The results: 1. Mark Webber (Red Bull) 1h32:23.081; 2. Robert Kubica (BMW Sauber) 7.626; 3. Lewis Hamilton (McLaren) 18.944; 4. Sebastian Vettel (Red Bull) 19.652; 5. Jenson Button (Brawn) 29.005; 6. Kimi Raikkonen (Ferrari) 33.340; 7. Sibastien Buemi (Toro Rosso) 35.991; 8. Rubens Barrichello (Brawn) 45.454; 9. Heikki Kovalainen (McLaren) 48.499; 10. Kamui Kobayashi (Toyota) 1:03.324; 11. Giancarlo Fisichella (Ferrari) 1:10.665; 12. Vitantonio Liuzzi (Force India) 1:11.388; 13. Romain Grosjean (Renault) 1 lap; 14. Jaime Alguersuari (Toro Rosso) 1 lap.

Retirements: Fernando Alonso (Renault): accident second lap; Adrian Sutil (Force India): accident second lap; Jarno Trulli (Toyota): accident second lap; Nick Heidfeld (BMW Sauber): accident 22nd lap; Nico Rosberg (Williams): mechanical problem 28th lap; Kazuki Nakajima (Williams): accident 31st lap.

Overall standings: Drivers’: 1. Jenson Button (GBr) 89 points; 2. Sebastian Vettel (Ger) 74; 3. Rubens Barrichello (Bra) 72; 4. Mark Webber (Aus) 61.5; 5. Lewis Hamilton (GBr) 49; 6. Kimi Raikkonen (Fin) 48; 7. Nico Rosberg (Ger) 34.5; 8. Jarno Trulli (Ita) 30.5; 9. Fernando Alonso (Esp) 26; 10. Timo Glock (Ger) 24; 11. Felipe Massa (Bra) 22; 12. Heikki Kovalainen (Fin) 22; 13. Robert Kubica (Pol) 17; 14. Nick Heidfeld (Ger) 15; 15. Giancarlo Fisichella (Ita) 8; 16. Adrian Sutil (Ger) 5; 17. Sibastien Buemi (Sui) 5; 18. Sibastien Bourdais (Fra) 2.

Constructors’: 1. Brawn 161 points; 2. Red Bull 135.5; 3. McLaren 71; 4. Ferrari 70; 5. Toyota 54.5; 6. Williams 34.5; 7. BMW Sauber 32; 8. Renault 26; 9. Force India 13; 10. Toro Rosso 7. — Agencies

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