sebi:S.O.No.732(E)

SEBI · SEBI · 2001-09-03 · G. N. Bajpai, Chairman, SEBI

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Facts / Headnote

Board of UPSE superseded for one year; Shri. M. N. Sabharwal appointed as Administrator

Provisions invoked

• s. 433
• s. 11

Regulations

• Reg. 199

Parties

• Uttar Pradesh Stock Exchange Association Ltd.

Holding

The Board of Directors of the Uttar Pradesh Stock Exchange Association Ltd. is superseded for a period of one year with effect from July 12, 2002, and Shri. M. N. Sabharwal is appointed as Administrator to exercise and perform all the powers and duties of the Governing Board.

Full text

Mumbai, the 12 day of July, 2002 ORDER U/S 11 OF THE SECURITIES CONTRACTS (REGULATION) ACT, 1956 SUPERSEDING THE BOARD OF DIRECTORS OF THE UTTAR PRADESH STOCK EXCHANGE ASSOCIATION LTD. S.O.No.732(E) Based on the correspondence received from the Public Representatives on the Board of the Uttar Pradesh Stock Exchange (hereinafter referred to as “UPSE”) the then Nominee Director of the Securities and Exchange Board of India (hereinafter referred to as “SEBI”) on the Board of UPSE and the then Executive Director of UPSE and based on the observations made in the inspection report of UPSE conducted by SEBI from March 12-17, 2001, the compliance reports and monthly development reports submitted by the UPSE, SEBI had conducted an enquiry into the following irregularities: (i) Interference from the elected directors and brokers in the functioning of the exchange making it difficult for the Executive Director (ED) to function as required under the bye laws of the exchange and SEBI directives, (ii) Unruly behaviour of the brokers in the Board meeting held on July 27, 2001 and attempt to threaten and restrain the Public Representative Director from discharging their functions, (iii) Process of recruitment of ED without following the guidelines issued by SEBI, (iv) Non attendance by the President and restraining the ED from attending the meeting convened by SEBI on August 14, 2001 to discuss the plan of each exchange for Demutualization/ corporatisation, (v) Non compliance of SEBI directi

6 Subsequently, the Governing Board, vide their letter dated December 05, 2001, sought for certain clarifications from SEBI and also requested for extension of time of 20 days from the date of their Board meeting scheduled on December 14, 2001 to make their submissions. Although SEBI provided the necessary clarifications to the Board, the request for extension of time for submission of the reply was denied. Subsequently however, pursuant to a further request for extension of time made vide letter dated December 11, 2001, SEBI granted time until December 20, 2001.

and also requested for extension of time of 20 days from the date of their Board meeting scheduled on December 14, 2001 to make their submissions. Although SEBI provided the necessary clarifications to the Board, the request for extension of time for submission of the reply was denied. Subsequently however, pursuant to a further request for extension of time made vide letter dated December 11, 2001, SEBI granted time until December 20, 2001. 7 However as the submissions made by the Governing Board vide their letter December 20, 2001 found to be unsatisfactory, the Chairman, SEBI granted another opportunity of hearing to the Board on March 15, 2002. On the said date, the President and the Officiating Executive Director of UPSE appeared on behalf of the Governing Board before the Chairman and made their

Source: SecMarx — sebi:S.O.No.732(E). AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.