The exchange is further investigating the modus operandi of how such malpractises were being conducted. It has been conveyed that any persons found guilty in the investigations will be dealt with sternly.

Confirming the development, the BSE president Anand Rathi told The Financial Express that some officials had put in their papers when they were cornered on the issue after the BSE investigated the matter. "The exchange management is taking all steps to ensure that these incidents do not recur. It is only a handful of people who tarnish the image of the exchange this way", Mr Rathi added.

The incident has brought into sharp focus the leakages from such a crucial department of the exchange. Exchange bosses now say that they will take all steps to ensure that such leakages of information to a section of market players will no longer be tolerated and will be dealt firmly.

Sources said some of the employees in the computer department used to sell the information to selected brokers. The classified information pertained to the number of shares held by each of the 500 plus brokers, their daily buy and sell positions and their systematic pay-in and pay-outs. However, sources say the names of the brokers to whom the information was passed on by the group of three may never be known, despite the fact that the exchange has been galvanised into action.

According to sources, this incident may also have a link with a previous scadal when some BSE members entered transactions through the system after the closure of the market hours. As a result, all necessary steps are being initiated so that the exchange reputation is not at stake this time round.