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Ahmedabad exchange board sacked

Mumbai, March 27: The Securities and Exchange Board of India (Sebi) today sacked the governing board of the Ahmedabad Stock Exchange (ASE) accusing it of failure to curb ‘unofficial’ trading by brokers there and appointed an administrator in its place for a year.

Superseding the ASE governing board for one year, Sebi appointed P. K. Ghosh as administrator. In his order, Sebi chairman G. N. Bajpai said the ASE board had failed to ensure proper governance and implementation of Sebi directives and provisions of the Securities Contract Regulation Act (SCRA).

Sebi said the exchange had submitted a ‘false’ report in September that said no unofficial market was being conducted within its premises and members were not participating in any such market.

In his order, Bajpai observed that “a governing board, which cannot think of ways to ensure that illegal activities are not carried on, does not deserve to continue. “Sebi is mandated to ensure safety and integrity of the market and restore the confidence of investors in the exchange,” he said.

The regulator had initiated similar actions against Pune and Bhubaneshwar exchanges. In the case of BSE, Sebi had asked the then president Anand Rathi and other directors to step down following the March 2001 scam.

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