Former Home Secretary G K Pillai today said his resignation as MCX Stock Exchange Chairman was partly because of action initiated by CBI against two former top officials of Sebi for alleged irregularities in grant of licence to the bourse.
Pillai, who was appointed public interest director and chairman of MCX-SX after Sebi ordered a restructuring of its board in the wake of NSEL scam, resigned last week within hours of CBI initiating a Preliminary Enquiry against Sebi's former chairman C B Bhave and former member K M Abraham.
While he had cited 'personal grounds' for his resignation at that time, Pillai said in an interview to CNBC-TV18 channel today said that "no action should be taken against individual officers" if a regulatory view is taken on the basis of facts and it would be "party correct" to say that his decision to quit was because of the CBI action.
He also termed the timing of the CBI move as "quite atrocious" and said that any agency doing investigation and taking action in the financial markets has to know the implications of its action on the financial market itself.
Pillai termed the CBI action as "most unfortunate" and said that Bhave was an outstanding officer of high integrity.
"I think this whole action of trying to take or trying to second guess decisions taken five years afterwards is not good for the business climate in India," he added.
Pillai also said that his understanding of MCX-SX case was that Sebi had taken an extremely fair and legal decision and therefore "to try and second guess what they should have done five years down the line by an investigating agency doesn't help at all".
"This is the same thing which happened both in 2G and the coal licence applications that people who have got a genuine license by the regulator, you cannot question them years later," he added.
Asked whether such actions would discourage officers of high integrity from becoming regulators, Pillai said, "It will be problematic. People will think twice but this is a matter, which really government needs to sit down and really talk with investigating agencies.
"It is important for the investigative agencies like CBI, which is now looking into extremely complicated financial issues including financial capital markets. They really need to understand what is the basis of certain decisions taken and not just go by strict legal interpretation of somebody gave a view again.
"It is quite possible for people to change their views in the light of facts. So long as that view is based on the facts available, I think no action should be taken against individual officers," he added.
Asked whether this was the point he was making with his resignation, he said, "Partly. The point I am making is that one doesn't want to be in a situation also where years from now people are going to say: here is a decision taken and people who are even incidental or otherwise not connected with the decision should not be really hauled into this whole issue.
