Friday, March 9, 2001,
Chandigarh, India


M A I N   N E W S

BSE chief’s resignation accepted

Mumbai, March 8
The governing board of the Bombay Stock Exchange today accepted the resignation of Anand Rathi as its President in the wake of allegations of his involvement in a bear cartel leading to a crash in sensex two days after presentation of the Union Budget.

The board which met today accepted his resignation and according to Rathi, the Vice President Dina Mehta has been asked to officiate till the monthend.

Rathi is the second President to quit at the fag-end of his tenure as elections are due to be held on April 1.

Rathi told newsmen after a marathon meeting “let there be a proper enquiry into the allegations and I am ready to face the investigations”.

The Securities and Exchange Board of India (SEB) is conducting an investigation into the bear hammering leading to the sensex falling by 176 points on March 2.

SEBI Chairman D. R. Mehta, when contacted, declined to comment stating that investigations were in progress.

This is the second time that a BSE President had to quit office few days before his tenure was to end. In 1998, J.C. Parekh, the earlier President, was sacked by SEBI because of his involvement in the BPL, Videocon and Sterlite price manipulation, whose probe is yet to be completed by the market regulator.

In a statement, BSE said Rathi had informed the Board about certain allegations against him and other office bearers and he has requested SEBI Chairman to institute an inquiry. The board also offered its full co-operation to the probe.

Rathi strongly denied all allegations and reiterated to the board that no benefit has ever been availed of by him and he has not obtained and used any privileged information for his or any other party’s benefit.

However, in order to maintain the highest dignity and standards of public morality, Rathi offered to step down as President.

The board discussed his offer to resign and expressed their complete confidence in the integrity of Rathi and appreciated the “excellent work done by him as the President of the stock exchange”, the statement said.

UNI adds: Mr Rathi has resigned on moral grounds and it should be taken in positive light, said a board member who did not want to be named.

Meanwhile, Mr Rathi denied any wrongdoing and said that he was quitting to maintain the dignity and credibility of the President’s office.

BSE Vice President Ms Dina Mehta will officiate as President till April 1 by which time the new governing board will be elected.

Brokers generally welcomed the resignation of Bombay Stock Exchange (BSE) President Anand Rathi and said: “It is a right step in maintaining the high standard of credibility and the dignity of the highest post of the bourse”.

Mr Roshan of Motilal Securities said it was a just allegation and let the Securities and Exchange Board of India (SEBI) probe it and truth come to light.

“I would not doubt the President’s integrity, but I don’t see why the Board would not accept his resignation,” said Mr Bimal Parekh, a director at BSE brokerage Sunidhi Consultancy.

Many other brokers also said the resignation of Mr Rathi was a positive step. Mr Rathi’s resignation also provided certain amount of confidence among the market participants.

A lady broker, who did not want to be named, said that it was sheer coincidence to have the first ever lady president at the country’s premier stock exchange on the International Women Day. 

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