Mg Damani Steps Down As Cdsl Chief

Madan Gopal Damani, chairman and managing director of Central Depository Services India Ltd (CDSL), today submitted its resignation to the Securities and Exchange Board of India (Sebi).

His resignation follows notices issued to the office-bearers of CDSL, including to Damani and the nominee directors from the Bombay Stock Exchange (BSE),Deena Mehta and Bhagirath Merchant (former BSE president), seeking their clarifications on their being directors on CDSL board for over three years.

Sebi, at the time of granting the permission to CDSL for its depository business had inserted a condition that CDSL elected director cannot hold this post for more than three years.

This was accepted by the CDSL board, and accordingly the office bearers are not expected to continue beyond three years. But the articles of association of CDSL were goofed up in this respect.

Damani, in his letter to Sebi chief D R Mehta, said, "Obviously, I cannot explain the difference between the conditions imposed by Sebi at the time of granting certificate of commencement of business and amendments actually carried out, as I was not concerned with the day-to-day administration of the company and only S S Vyas, the general manager , legal and secretarial department, can explain the goof-up."

However, Deena Mehta and Merchant still continue to remain on CDSL board. It needs to be noted that the term of these members technically ended in December 2000.

Meanwhile, Anand Rathi, the outgoing president of BSE, has not been issued the notice following his resignation as director of CDSL early this month.