Rathi presents case before Sebi chief

Rathi presents case before Sebi chief
ENS ECONOMIC BUREAU

MUMBAI, MAR 21: Securities and Exchange Board of India (Sebi) chairman DR Mehta on Wednesday heard the verbal submission of former Bombay Stock Exchange (BSE) president Anand Rathi and his group firms in the alleged leakage of information on select stocks from the surveillance department of the exchange on March 2, 2001.

After the two and half hour hearing, Sebi executive director DN Rawal told mediapersons that Rathi and his group broking firms will be putting forward their written submissions. She also said the market regulator will hear the other sacked broker directors of the BSE governing board on Thursday.

Asked on what kind of submission was made by Rathi and his group firms, Rawal declined to comment. Rathi's counsel, P Barucha also declined to comment saying "the matter is sub-judice".

Rathi himself did not appear before the Sebi chairman, and was represented by Anand Rathi Securities directors Amit Rathi and Pradeep Gupta. After the hearing, Sebi board member Prof JR Varma clarified that the hearing was for the debarment of Anand Rathi from the governing board of BSE and he and his firms being debarred from doing any broking business.

Last week, Sebi had sacked Anand Rathi from the board of BSE and he and his firms -- Anand Rathi Securities Pvt Ltd, Rathi Global Finance Ltd, Rathi Capital and Securties Pvt Ltd and Navratan Capital and Securties Pvt Ltd were directed not to undertake any fresh business as a broker until fresh orders from the market regulator. Following the decision, Anand Rathi and his firms had moved Bombay High Court challenging the Sebi order.