The exchange has apparently requested the markets regulator to spare two of its division chiefs, N Parakh and PK Bindlish, so that they could be sent on deputation to BSE to improve the skills of people working in the derivatives segment and the surveillance department.

Exchange president Anand Rathi said he did not want to comment on the issue as no final view had been taken. "It is for Sebi to take a final view," he added.

As it stands now, the issue has been discussed by top BSE officials and is awaiting the approval of its governing board. Senior Sebi officials acknowledged that the matter was alive and a final view would be taken only when Sebi chairman DR Mehta, who was on medical leave, was back in office next week.

BSE executive director AN Joshi told The Financial Express that this was an internal matter of the exchange and he was not in a position to discuss it with the media. He added that "in the past there have been similar cases of people coming on deputation to the exchange and there is nothing unusual in Sebi functionaries joining BSE on deputation".

Old timers who are aware of the exchange's traditions and history said that in the early 90s when Sebi had just taken shape and was on the "learning curve", BSE had sent one CM Tilak on deputation to Sebi. But never in its history has any one from Sebi been sent on deputation to the exchange.

There is one instance of a Sebi official joining BSE a couple of years ago. ST Gerela, the head of the exchange's clearing and settlement department, joined BSE after severing his links with Sebi, sources confirmed.

Exchange insiders are bitterly critical of the exchange administration for its failure to impart professionalism in key areas like surveillance which is under the direct supervision of the executive director. They charge the ED with not exercising his authority. However, ED Joshi refused to react to the charge.

BSE director (HRD and general administration) GL Gera said: "The BSE proposal to seek the help of senior Sebi officers was not a hush-hush affair as claimed by disgruntled elements. In fact, the BSE management had debated the issue and decided to go ahead so that the surveillance function could be raised to international standards by drawing on the expertise of the Sebi officials".

He added that some frustrated officers were out to tarnish the image of the exchange. He wondered why they did not respond to the advertisement couple of months ago through which the exchange sought to select its director (surveillance). Enquiries revealed that a couple of officers had shown interest for the job but were not considered for selection. Instead, the management is inclined towards Sebi officers who have no experience in the running of a stock exchange, the sources pointed out.