SEBI directive on functioning of BSE broker directors

By Our Special Correspondent

MUMBAI, MARCH 28. The Securities and Exchange Board of India (SEBI) today issued a directive to Bombay Stock Exchange (BSE) barring any broker from acting as a director on the board of BSE. SEBI issued this directive in the wake of elections of three broker directors to the Governing Board of the Exchange.

After its board meeting here, today, SEBI Chairman Mr. D. R. Mehta said that if elections are being conducted ``let them go ahead'' and the regulator cannot stop them as bye laws of the Exchange provide for it. ``But the order restraining them from participating on the board will be in force till they are revoked,'' Mr. Mehta added. He also said that was a possibility of extending the application of restraining the broker directors from acting as directors to other exchanges also.

Meanwhile BSE today conducted the elections for three members to the governing board of the BSE for the year 2001-02. It stated that the total number of ballot papers were 388 and all were found valid. The first three members who were declared elected for a term of three years are Mr. Sunil M. Shah, Director, Evergreen Securities, Mr. Apurva Shah, K. Jayantilal Securities and Ashok Kumar Damani. However the BSE issued a notice to its members that saying that SEBI has issued a letter today directing that the brokers are restrained from acting as directors of the Governing board of BSE.

The SEBI board also decided to introduce the rolling settlement for 424 scrip by July 2, 2001. At present only 163 scrips are under the rolling settlement. Mr. Mehta said that all exchanges were asked to make necessary infrastructure in place by July. Those exchanges which fail to provide adequate infrastructure would be permitted for trading on spot delivery basis.

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Section  : Business
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