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BSE
awaits Sebi direction on new board structure
Our
Markets Bureau
Mumbai, Jan 4: Even as the capital market regulator Securities
and Exchange Board has cleared the way for elected broker-directors
to be on the governing board of the bourses, the Bombay Stock
Exchane awaits the market regulator’s formal clearance for its
board structure.
Amidst this, Bombay Stock Exchane’s former elected broker directors
expect the Sebi to clear their reinstatement on the BSE’s board
following the clean chit recently given by the joint parliamentary
committee probing the securities scam. The JPC has said that
neither Anand Rathi (former president) nor Deena Mehta (former
vice president) have committeed anything wrong in the securities
scam.
Following the scam in March last year the Sebi had asked all
the elected broker members to step down. Currently, the affairs
of the BSE is being conducted by nine nominated public representatives
on the board.
Last week, at the BSE annual general meeting a section of the
members expected the executive director to take up the matter
relating to reinstating the former broker directors on the board,
till the new elections are held sometime in March this year.
“We will await Sebi’s direction in this regard”, said a top
BSE official requesting anonymity. “If asked, we may even agree
to hold fresh elections for the purpose”.
Thus, the directors who were forced to step down will have to
wait a while before they are being re-inducted on the board.
Not only this, but as per the indication available, the BSE
administration is least interested in reinstating the directors
who were asked to step down pending the inquiry against them
ordered by the regulator.
Further, the BSE official said: “Unless Sebi gives them any
direction, it is very difficult to initiate the process of expanding
the governing board. For an exchange it is very important to
have a fullfledged board as unless we have full 18 members board
we can not take the important decision.”
This is one of the prime reason why Bombay Stock Exchane in
particular has been postponing its decisions on the important
matters related to the exchange for lack of sufficient strength
of director on the board.
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