Tuesday, March 13, 2001,
Chandigarh, India


M A I N   N E W S

SEBI restrains BSE board

Mumbai, March 12
In an unprecedented punitive action, the Securities and Exchange Board of India, tonight came down heavily on the governing board of the Bombay Stock Exchange restraining its officiating President Deena Mehta and six others from acting as directors until further notice in the wake of the persisting stock market meltdown.

The market regulator suspended the four firms of Mr Anand Rathi, who quit as the BSE chief last week, from undertaking any fresh business as a broker until further notice.

The directors who have been restrained by SEBI are Mr Anand Rathi, Deena Mehta, Himanshu N. Kaji, honarary treasurer, Jayesh K. Sheth, Kirit B. Shah, Motilal Oswal and Niranjan K. Nanavati.

The SEBI said in a late night statement that the actions had been taken under in the “interest” of investors and the “orderly development” of the securities market in India.

This is the first time in the history of the 125-year-old Bombay Stock Exchange that, the SEBI took such punitive actions against BSE office-bearers as well as the broker directors.

The punitive measures by the SEBI came a day after the Chairman of the market regulator D.R. Mehta held a three-hour meeting with Union Finance Minister Yashwant Sinha in Delhi on the stock market crash.

The four firms of Mr Rathi, which have been directed by SEBI not to undertake any fresh business as a broker till further orders are Anand Rathi Securities Pvt Ltd, Navratan Capital and Securities Pvt Ltd, Rathi Global Finance Ltd and Rathi Capital Securities Pvt Ltd.

When contacted, Mr Rathi said: “I am busy in a meeting”.

According to the market regulator, seven broker directors on the governing board had been removed while the nominated members, four from SEBI and five others, would continue.

A top SEBI official said there had to be a clear separation between survelliance between executive directors and the elected body. PTI

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