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Sebi restructures derivatives panel, asks brokers to quit : The Financial Express
Even as derivatives trading is all set to commence from July 2, the Securities and Exchange Board of India (Sebi) has stripped the powers of all the elected members on the governing council of the derivatives segment of the Bombay Stock Exchange (BSE).
Even as derivatives trading is all set to commence from July 2, the Securities and Exchange Board of India (Sebi) has stripped the powers of all the elected members on the governing council of the derivatives segment of the Bombay Stock Exchange (BSE).
The new committee to be headed by the Sebi representative Nagendra Parakh, will replace the old panel. It will consist only of public representatives and the officials of the BSE.
This finally brings the entire functioning of the BSE under Sebi control, wherein the broker-members do not have any say in the day-to-day operations of the exchange.
In mid-March, following the scam, Sebi had asked all the elected broker representatives on the BSE’s governing board to step down. An important body at the BSE, the council was entrusted with the task of suggesting ways and means to the BSE’s governing board on all matters relating to the derivatives segment, including product development and marketing the exchange’s facilities under the new regime. Interestingly, without any communication to disband the most important panel of the exchange and asking the broker directors on the council to step down, the Sebi had forced the BSE to pass a resolution at the council’s meeting earlier this month, whereby the council was disbanded completely.
Accordingly, all the broker representatives on the council have stepped down. Included in the list of members who stepped down from the council were: Mr Ajit Surana, Mr Deven R Choksey, Mr Pashupati Advani and Mr Prakash Kacholia.
The public representatives Mr Vijay Kalantri, Prof V Raghunathan (IIM-Ahmedabad) and Mr NP Sarda (chartered accountant) will continue in the new committee. Also, the BSE’s executive director AN Joshi and CEO (derivatives segment) Dr Sanjeev Mehta will continue in the new committee. The Sebi representative, Mr Parakh, when contacted merely said: “This development concerns the BSE. It is better to check with the BSE officials and Dr Sanjeev Mehta, as they should be in better knowledge of the new developments.”
The BSE’s derivatives segment CEO Dr Sanjeev Mehta was not ‘‘aware’’ of this important development. According to Sebi sources, this decision has been taken as per the directive of the government to demutualise the stock exchanges and separate the trading and administrative functions of the exchanges.
The broking community is disturbed by Sebi’s latest move. Said one of BSE’s former directors: “It is because of the failure of Sebi that volumes at the derivatives segment of the exchange is not picking up. Sebi was created not to look after the management of the stock exchanges, but to regulate them and it should stick to the responsibilities it has been assigned. The developmental aspect of the stock exchanges should be left to the brokers.”
This finally brings the entire functioning of the BSE under Sebi control, wherein the broker-members do not have any say in the day-to-day operations of the exchange.
In mid-March, following the scam, Sebi had asked all the elected broker representatives on the BSE’s governing board to step down. An important body at the BSE, the council was entrusted with the task of suggesting ways and means to the BSE’s governing board on all matters relating to the derivatives segment, including product development and marketing the exchange’s facilities under the new regime. Interestingly, without any communication to disband the most important panel of the exchange and asking the broker directors on the council to step down, the Sebi had forced the BSE to pass a resolution at the council’s meeting earlier this month, whereby the council was disbanded completely.
Accordingly, all the broker representatives on the council have stepped down. Included in the list of members who stepped down from the council were: Mr Ajit Surana, Mr Deven R Choksey, Mr Pashupati Advani and Mr Prakash Kacholia.
The public representatives Mr Vijay Kalantri, Prof V Raghunathan (IIM-Ahmedabad) and Mr NP Sarda (chartered accountant) will continue in the new committee. Also, the BSE’s executive director AN Joshi and CEO (derivatives segment) Dr Sanjeev Mehta will continue in the new committee. The Sebi representative, Mr Parakh, when contacted merely said: “This development concerns the BSE. It is better to check with the BSE officials and Dr Sanjeev Mehta, as they should be in better knowledge of the new developments.”
The BSE’s derivatives segment CEO Dr Sanjeev Mehta was not ‘‘aware’’ of this important development. According to Sebi sources, this decision has been taken as per the directive of the government to demutualise the stock exchanges and separate the trading and administrative functions of the exchanges.
The broking community is disturbed by Sebi’s latest move. Said one of BSE’s former directors: “It is because of the failure of Sebi that volumes at the derivatives segment of the exchange is not picking up. Sebi was created not to look after the management of the stock exchanges, but to regulate them and it should stick to the responsibilities it has been assigned. The developmental aspect of the stock exchanges should be left to the brokers.”