In a notice yesterday, the BSE said the order was revoked ``in the larger interest of the market''.
The board meeting, where the controversial decision was taken, was not attended by the Sebi representative on the BSE board, L K Singhvi, who was out of station. Sebi chairman D R Mehta is also out of the
country. BSE treasurer Rajendra Banthia said: ``We don't need to inform Sebi...We can take a decision anytime without giving explanations.'' But he was silent on whether the decision was in violation of the exchange's rules.
Rule 58(a) of the BSE bylaws, which lays down the process for readmission of a defaulter, says: ``Upon an application for readmission by a defaulter, the defaulters' committee shall investigate...and no further proceedings shall be taken by the governing board with regard to his readmission....'' The BSE did no such thing on this occasion.
