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A Sebi team will visit the Vadodara Stock Exchange (VSEL) here on Friday to look into the controversy regarding the exchange board, a top bourse fficial said.
"The Sebi conveyed in its message that the team, led by its General Manager Sunil Kadam, will meet investors, members, brokers, and board of directors tomorrow," Vadodara Stock Exchange Managing Director Someshwara Rao told PTI today.
The members of VSE and the Forum of Vadodara Stock Exchange Brokers had alleged "unethical" practices by the current board of directors, which had adjourned its AGMs thrice in the recent past.
Rajya Sabha MP (Independent) and former chairman of VSE Parimal Nathwani, President of the Forum, Vishnu Patel among others, had sought superseding of the board of directors and appointment of an administrator.
They had alleged the present board was not constituted as per the guidelines specified by the market regulator.
"I have written a letter to SEBI demanding immediate superseding of VSE Board in the interest of broking, investing and trading communities," Patel had said earlier.
He said the present board was "unqualified" to run the affairs and indulged in "unethical practices". "Moreover, six posts of directors are lying vacant," the MP added.
According to sources, the Sebi rule mandates that the number of share-holding directors on Board has to be equal to the number of directors appointed by the regulator.
In the present case, out of six members of the Board, two directors have been appointed by Sebi as public interest directors and rest appointed by members.
As none of the remaining four directors are willing to step down, some members of the exchange raised the issue with Sebi.
