9911796707
TMI BlogSupersession of the Governing Board of the Pune Stock ExchangeX X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the Pune Stock Exchange and their clients were inspected. During the course of the inspection, admissions were received from some of the brokers of the exchange wherein they stated that the members will stop the practice of off the floor transactions and carry forward transactions. In other words it was admitted before the SEBI officials that there was large scale off the floor transactions which were not reported to the stock exchange and that carry forward of transactions were being undertaken by them. It was observed that some of the brokers who had indulged in such activities were the elected directors of the exchange. In fact, all the elected directors of the exchange had as per their own written representation entered in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s stated by them in their letter dated September 18, 1996. It was further stated that the issue relating to carry forward and off the floor transactions was discussed in the Governing Board in the context of SEBI's earlier inspection report of 1995. These discussions were held in the month of October-November 1995 and thereafter a decision was taken to appoint a panel of Chartered Accountants to inspect the books of the brokers. It was further stated that Chartered Accountants inspection reports confirmed that carry forward and off the floor transactions were being carried on at Pune Stock Exchange, The public representatives further expressed concern about the rampant carry forward transactions and off the floor transactions. I have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sure that illegal transactions do not take place and in this case the illegal transactions have been carried on also by the elected directors of the exchange themselves. Further around 25 brokers are reported to have entered into such transactions indicating the extent of malaise of such illegal transactions. In view of the above facts, I am convinced that the Governing body of Pune Stock Exchange has failed in ensuring proper governance and implementation of the provisions of the SCR Act as well as its Rules and notifications issued thereunder from time to time. Therefore, it is essential that drastic measures are adopted in order to ensure the safety and integrity of the stock exchange and to ensure that illegal transactions as discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Executive Director will however continue to be an employee of the stock exchange and give such assistance to Mr. W.S. Tambe as he deems fit. Mr. Tambe may take further assistance of such persons as he thinks it necessary. I have been informed that the stock exchange is holding an annual general meeting on September 28,1996 for the purposes of electing new directors as the old directors have resigned. The annual general meeting will in view of the above order adjourn the agenda item relating to election of directors till further orders from SEBI. [No. SEBI/LE/0111-9/96] DJL MEHTA, CHAIRMAN Securities and Exchange Board of India - Notification Tax Management India - taxmanagementindia - taxmanagement - taxmanagem ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
