Finding irregularities, capital market regulator Sebi today warned Jaipur Stock Exchange (JSE) and has asked it to comply with the applicable securities laws in a timely manner as prescribed.
Sebi has found various lapses and irregularities in the functioning of JSE and its governing board like mismanagement and poor corporate governance, failure to appoint a Chief Executive Officer, non-maintenance of a proper investor service centre and shareholder directors of JSE holding the shares in excess of the limit stipulated.
While noting that JSE had taken certain corrective steps, Sebi in an order said "the same are only pursuant to the intervention of" the market regulator.
"...Hereby warn Jaipur Stock Exchange and advise them to comply with applicable securities laws that govern their functions, in letter and spirit in a timely manner," the Securities and Exchange Board of India (Sebi) said.
The regulator observed that while "the exchange may attribute its inability to ensure timely compliance with Sebi circulars/directives, to its limited resources, it only shows the lack of its commitment to function as a stock exchange".
Accordingly, Sebi said that "JSE was negligent in the discharge of its functions and duties".
Sebi said that "no independent violation of the circular has been proved" against JSE's directors -- Rajender Prashad Gupta, Veena Gupta, Amit Gupta, Rajeev Gupta, Puneet Jain, C P Mittal, Anil Gadodia, Manish Gadodia and Manjula Jain.
The market regulator had conducted an inspection of JSE for the period of December 1, 2008 to October 31, 2011, for the purpose of renewal of recognition.
