Finding some irregularities, capital markets regulator Sebi today warned Vadodara Stock Exchange and asked it to ensure "transparency" and "fairness" in its dealings in the future.
The Securities and Exchange Board of India (Sebi) found irregularities on part of Vadodara Stock Exchange (VSE) with respect to allotment of six of the bourse's properties.
"By not inviting fresh bids and selling the property for a value less than the guideline value and the value decided in an earlier board meeting, the same may have caused loss to VSE and its shareholders," Sebi said in the order today.
The market regulator noted that the decision making in VSE lacked "transparency" and "fairness in allotment".
"...Hereby caution the Vadodara Stock Exchange Limited for its conduct observed in this order," Sebi said.
"The stock exchange is advised to ensure transparency and fairness in its dealings in future and also ensure compliance with all statutory provisions that govern its activities in the securities market," it added.
Sebi show cause notice had alleged that the conduct of VSE lacked transparency, due diligence and appeared to be arbitrary in nature.
The show-cause notice was issued on the basis of the observations and findings of an inspection conducted on VSE by Sebi during the year 2009.
The board of VSE, in a meeting held on May 11, 2009, had decided to sell six of its properties and had issued an advertisement on June 22, 2009 inviting offers within 10 days for such proposed sale.
