Securities and Exchange Board of India (Sebi) will soon finalise its decision on the defaulting members of the Calcutta Stock Exchange (CSE) for their inability to honour payment commitments.
Sebi has summoned Dinesh Kumar Singhania today to a personal hearing which he did not attend. Informed sources said other defaulting brokers namely Harish Chandra Biyani and Ashoke Kumar Poddar were summoned to attend personal hearings as well.
When contacted Sebi chairman D R Mehta said the market regulator would seek advise from its legal department on whether it would issue a final order on Singhania without asking him to attend for a further hearing.
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Sebi sources said Singhania did not even inform the market regulator in advance that he would not be present. They however confirmed that the summon was issued in time. Repeated attempts to contact Singhania failed.
The combined outstanding of Singhania, Biyani and Poddar to CSE stood at over Rs 92 crore. The inability of 10 stock broking outfits, which were controlled by these three brokers, caused payment crisis which, in turn, brought the local bourse to its knees.
After the payment problem cropped at the exchange, Singhania, who was also an elected director to CSE, stepped down from the board.
This followed resignation of the entire board members and Sebi constituted a management committee, under the chairmanship of the former State Bank of India chairman Dipankar Basu, to monitor the show at CSE.