15 May, 2021

Carving Up The Broking Cartel

SEBI gets professionals to take on the BSE old guard

Carving Up The Broking Cartel

AS the new governing board at Dalal Street's Jeejibhoy Towers gets ready to celebrate BSE's 125th anniversary next year, its mandate is clear: shape up or ship out. With market watchdog SEBI deciding to get the old guard out, BSE president J.C. Parekh has received his marching orders. Observes D. Vakharia, a BOLT (BSE Online Trading) trader: "Sacking Parekh was unfortunate, but the message is clear. For the first time, SEBI has thrown an open challenge to the old boys' network which has been running the premier stock exchanges like its personal fiefdom."

SEBI has gone on the attack mode since March 11—the last day for submitting applications for the election of governing board members—when it intervened by introducing changes in Rule 100 of the bourse's bylaws. This enabled even a fresh corporate member to contest the polls and enter the board. The elections were held to replace the board members retiring on March 31: M.G. Damani, former BSE president, Jayesh Sheth, director of Kantilal Chhaganlal Securities, Padmakant D. Shah of...

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