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SEBI declares earlier order null and void
November, 10th 2009

An issue with regard to NSDL has been raging. But finally the SEBI board has decided that the order of a two-member committee of SEBI stands null and void, reports CNBC-TV18s Priyal Guliani.

This has been a debate since January. Just to give you a perspective, in December 2008 a two member committee that was assigned, once Mr Bhave took over as the Chairman of Sebi and recused himself from the issue of Sebi versus NSDL in the IPO irregularities that happened in 2005, for that matter a two-member committee was set up to come out with its order on the matter. These members comprised of V Leeladhar of RBI and Mr. Mohan Gopal who is part of the National Judicial Academy.

The order stated that the NSDL has not fulfilled its duties in terms of cross checks and also had questions with regard to the Sebi board. Thereafter, there was an issue as to why this order has not been put out in the public domain.

The board members have been discussing this in the board meeting and thereafter the board had sent this matter to separate legal entities, sought legal advice from legal parties where it was said that this committee has gone beyond its term of reference. It has given quasi-judicial educating orders against the educators which were beyond the terms of reference. Hence the board totally has decided that this will stand null and void and the board will look into this matter afresh.

 
 
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