The Sebi board on Monday declared two orders given by a committee in December 2008, relating to IPO irregularities and DSQ Software, as null and void and are non-est (which means an order not served). The board as a whole, excluding chairman C B Bhave, would dispose of these two matters afresh, Sebi said.

One of the orders passed by the committee — which was constituted by Sebi in August 2008 — pertained to Bhave’s conflict of interest on the proceedings related to the alleged involvement of the National Securities Depositories Limited (NSDL) in the 2005 IPO scam when it was headed by him.

The committee, which was set up by the Sebi as suggested by the Finance Ministry, had recommended that Sebi should issue a code of conduct for depositories. G Mohan Gopal and V Leeladhar, in their order, also asked the Sebi to ensure that an assessment of the adequacy of the institutional arrangement to ensure the integrity of the depository system.

“The board had delegated its authority to the committee to dispose of three quasi-judicial proceedings pending against NSDL. The committee entered findings that the board failed as a regulator, while disposing of two matters relating to IPO Irregularities and DSQ Software Ltd. These findings against the board are outside the confines of delegation and therefore, these are without the authority of law. These findings, which have vitiated these two orders, cannot be severed from the rest of the orders. Hence these orders are null and void and are non-est,” Sebi said.

... contd.