Sebi Comes To The Rescue Of Whistle-blower Tirodkar

Mumbai, April 24: | Updated: Apr 25 2002, 05:30am hrs
The Securities and Exchange Board of India (Sebi) has once again intervened in the case of AA Tirodkar, former finance director of BSE, and has asked the exchange to review its decision to terminate his services.

The BSE governing board, which met here on Friday last, had decided to terminate the services of Mr Tirodkar as recommended by a one-man enquiry committee headed by former Mumbai High Court Justice Balasaheb V Chavan.

A BSE spokesperson also confirmed the move and said Sebi had suggested the governing board reconsider its decision on termination of Mr Tirodkar’s services.

Last Friday, BSE said the board had resolved that the services of Mr Tirodkar were not and would not be useful to the exchange and it was in the interest of the exchange that his services were being terminated as recommended by former Justice Chavan. This is the second time Sebi had intervened in Mr Tirodkar’s case. The BSE board had decided to terminate Mr Tirodakr’s services last year following a management enquiry recommendation.

However, the regulator stepped in and asked the exchange to conduct a free and fair enquiry by an independent body.

Following Sebi’s first intervention last year, Justice Chavan was appointed by BSE to look into the allegations levelled against Mr Tirodkar. Justice Chavan submitted his report earlier this year.

Mr Tirodkar came into the limelight last year following the controversial market crash of March 2001. It was alleged that the then BSE president Anand Rathi sought price-sensitive information from the surveillance department of the exchange. It was also alleged that Mr Tirodkar had a hand in passing on information relating to Mr Rathi’s conversation with the surveillance department to the regulator.

Sebi initiated an enquiry into this matter and banned Mr Rathi and his firms from doing business of stock broking and trading. The regulator finally found that the information sought by Mr Rathi was not used by him or by any of his companies.