MUMBAI, January 29: The board of the Securities and Exchange Board of India is expected to take up the issue of making changes in the bye-laws of the BSE to enable a third term for its president M G Damani. The BSE members are expected to give their nod to the proposal at the bourse's EGM slated for February 2.The move comes close on the heels of the government decision to allow D R Mehta to continue as SEBI chairman for two more years. The Finance Ministry has clarified that Mehta has a five year term which ends on February 20, 2000. Damani will be completing two years as president of the BSE in March. As per the exchange bye-laws, one person cannot become the president for three years continuously and there should be a gap of one year before he can become president once again.
According to sources, the market regulator is believed to be positively inclined towards endorsing the decision of the exchange. Sources say that it might well be smooth sailing for Damani, as according to the bye-laws of theexchange if five members of the governing board forward a request, the governing board has to abide by it and take it up at an EGM. The response from the members has already been overwhelming with as many 120 members pushing for the extension of Damani's term. The meeting will also decide on the suitable amendments in rule 114 of the exchange for facilitating such an extension.
The governing board, has merely an academic role to play once the amendments are finalised by the exchange members. The governing board is likely to meet on February 10 to consider these amendments, which would be finally sent to SEBI for clearance.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
