26 January, 2021

'The Suspension Is Unjustified'

The first woman to be elected to the BSE board, Deena Mehta feels SEBI's decision to suspend all broker-directors of the exchange will not stop insider trading. Excerpts from an interview to Outlook:

'The Suspension Is Unjustified'
On the suspension: It's totally unjustified. sebi's charge seems to be merely that some member-directors were present when some information was being obtained by a broker office-bearer. In fact, a meeting was under progress with the brokers' forum to discuss the turnover tax issue. Just because we were doing some work in (Anand) Rathi's chamber, we have been suspended!!

On interference by broker directors: It is established that Rathi's phone call ended at 3.16 pm by when the market had already fallen. So the allegation of using the information to trigger a fall is unjustified. Interference, as I understand, means preventing staff from performing their duties. After enquiries on the reasons of the fall, I don't see how the surveillance members were prevented from performing their duties. In fact, sebi has stated that the board would oversee the functioning of the surveillance department. The fall was very unusual and hence inquiries were made by Rathi. There is no interference in any manner by any of us. In fact, the present board has introduced the new...


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