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ASE board members turn down Sebi order, do not resign Saturday, June 2, 2001
Ahmedabad, June 1: The Ahmedabad Stock Exchange is in a chaos over the issue of corporatisation, with Sebi insisting that the elected members of the governing board of the stock exchange resign.
So far, the Sebi has twice directed the elected members of the stock exchange to resign warning them that they would be superceded if they fail to resign. However, the ASE members claim that there has been no direction from Sebi, either in word or in writing, asking the elected members to step down at all.
The ASE governing board comprises 14 members. Out of these, seven are elected broker members, two are Sebi nominees, four public representatives and one executive director.
Sources in the ASE said that Sebi had directed the elected members to step down in April. However, the governing board refused to resign. The general board meeting that met on Friday here decided that elected members would continue but the ASE would go ahead with the process of corporatisation on its own.
ASE director Deepak Shah, who is an elected member, said that keeping in view the statutory requirements and guidelines of Sebi and government of India the exchange has decided to adopt the process of corporatisation. “This would mean separation of ownership, management and trading rights in the ASE,” he added.
He further said that in the meeting they decided to corporatise the exchange and to convert the it into a public limited company for profit under provisions of the companies act and guidelines of SEBI and central government into the name of “The Stock Exchange Ahmedabad Limited.”
He further said that they have decided to hive off further surveillance and related functions of the exchange into a separate subsidiary company.
However, the sources in the ASE said that the reactions of SEBI on the move of the ASE are awaited. The rules of the government says that the trading member in the exchange should not have any office. However, the meeting of governing board has not ruled out the possibility of trading members to hold the post in the main company “The Stock Exchange Ahmedabad Limited,” which is against the law.
News Source : The AsianAge Ahmedabad Edition [ The coolest Newspaper for city ]