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| BhSE council meet sparks controversy | | | / Business Standard December 28,2001 | | | |
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| Bhse Council Meet Sparks Controversy |
| / BUSINESS STANDARD Dec 28, 2001, 00:00 IST |
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The decision of the Bhubaneswar Stock Exchange (BhSE) management to convene the council meeting on December 29 has kicked off a row following allegations of violation of instructions of the Securities and Exchange Board of India (Sebi) to the bourse on the matter.
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| Sebi, in its inspection report on April 21, 1999, had advised the stock exchange to serve a minimum of 15 days notice prior to the council meetings to enable the directors to plan their schedule to attend them.
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The Sebi note came in the light of findings that the stock exchange had been convening the council meetings at very short notice.
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In response, the BhSE management had replied on July 31,1999, committing that it would serve the notice at least 15 days prior to the meetings.
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However, the management is accused of flouting the Sebi diktat, sources said. For example, the notice for the council meeting on December 29 was issued only on December 19, they said.
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Similarly, for the crucial council meeting on September 29, in which the new president and the vice-president were elected the notice for the meeting was issued only 24 hours before. This is said to be the main reason for absence of all the Sebi-nominated directors in the meeting.
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Meanwhile, one of the Sebi-nominated directors of BhSE, M N Ray has written a letter to Sebi chairman D R Mehta and executive director of BhSE, Jay Sadany, highlighting the violation of the guidelines on convention of council meetings.
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When contacted, BhSE president T D Bhayana said he did not remember the suggestions in the Sebi inspection report. Ray, in his letter to the market regulator, has also challenged the election of Bhayana as the president of the bourse. He said the rules stipulate that the president will be appointed within ten days of the completion of the annual general meeting (AGM).
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However, Bhayana was appointed as president immediately after his election as the director in the September 29 AGM which stands adjourned due to non-adoption of accounts for 2000-01. With the AGM standing adjourned and not completed, Bhayana's election cannot be valid, Ray argued.
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The agenda for the proposed December 29 council meeting includes discussion on delay in mortgage of properties against housing loans to the executive director and secretary of the bourse.
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