Post wind-up of stock exchange employees' future at stake

Employees seek intervention of Nalco CMD

The disgruntled employees of Odisha Capital Market & Enterprises Ltd (OCMEL), a company formed after winding up of the Bhubaneswar Stock Exchange (BhSE), have sought the intervention of the chairman cum managing-director of National Aluminium Company (Nalco).

The employees are in distress as a sum of Rs 2.88 crore proposed towards superannuation fund and Rs 12.30 lakh for gratuity fund has been set aside by the company management, citing financial constraints.

Nalco is the major stakeholder in BhSE, the precursor to OCMEL. BhSE was wound up by an order of the Securities & Exchange Board of India (Sebi). Subsequently, OCMEL was formed according to the new certificate of incorporation of Registrar of Companies, Odisha.

Debraj Biswal, former managing-director of BhSE had filed an undertaking with Sebi to clear liabilities (of superannuation and gratuity fund) before distribution of assets of BhSE. Sebi had appointed GRC & Associates for valuation and verification of assets and liabilities of BhSE. Based on the valuation, Sebi directed the stock exchange to comply with the undertaking.

OCMEL employees alleged that assets of the erstwhile BhSE, including its land and buildings, have been transferred to the new company without setting aside any amount towards superannuation fund and gratuity fund.

“The Sebi exit order has been violated. Now, the future of the employees is at stake,” said an employee.

The OCMEL employees have submitted a petition to Nalco CMD T K Chand to take steps for restoration of the superannuation and gratuity fund. They have also moved the Sebi chairman, citing non-compliance of the order issued by the capital market regulator.

Burdened with high manpower cost, the board of directors of OCMEL has decided to rationalise the company’s human resource pool by paying a reasonable amount as deemed fit and proper for an employee.  

“The board has also proposed to pay compensation at the rate of 40 days of salary for every completed year of service or the salary for the remaining period of service whichever is less, in addition to other payments as statutorily required to be paid,’’ Debasis Samantray, director, OCMEL stated in a notice to shareholders.

OCMEL has convened an extraordinary general meeting of the shareholders on February 27 to take a final call on the matter.