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SYSDBA does not have privilege to create user

Aditya Mallik-OracleOct 27 2009 — edited Jan 6 2010
I have a fresh Oracle Database 11.1.0.7.0 installation.
I am able to connect to the database using either of the following commands from Linux :

sqlplus "/ as sysdba"

sqlplus "sys/pwd as sysdba"

But after I connect, I am not able to create user. Following command gives me error:

SQL> create user adi identified by adi;
create user adi identified by adi
*
ERROR at line 1:
ORA-01031: insufficient privileges


SQL>

My assumption was that sysdba role has unlimited privileges, then why does the database throw this error.
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Locked on Feb 3 2010
Added on Oct 27 2009
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