The Securities and Exchange Board ofIndia (SEBI) has superseded the board of Bhubaneshwar Stock Exchange (BhSE) and appointed retired IPS officer J. P. Verma as its administrator to ensure integrity of the bourse and protect the investors.Sebi had received several representations/complaints from members of Parliament and Sebi nominee directors on the exchange’s Council regarding siphoning of funds from the Bhubaneshwar Stock Exchange Members Welfare Trust Fund (MWT) to the tune of around Rs 1.30 crore. Sebi then ordered an inquiry, it stated in a release. Sebi aims to implement JPC report within a year: Bajpai NEW DELHI: Sebi aims to implement the recommendations of the Joint Parliamentary Committee (JPC) within a year, according to Sebi chairman G.N. Bajpai. The market regulator is also waiting for the regional stock exchanges to come up with their demutualisation proposals, Bajpai added. ‘‘We have already analysed the JPC report and identified the areas where we need to work,’’ Bajpai said. (ENS) Based on the recommendations of the inquiry officer, the exchange was directed to take certain actions, under Rule 11 of the Securities Contracts (Regulation) Act, (SCRA) 1957, but the exchange failed to implement the directives, Sebi stated.Responding to media reports and irregularities in the exchange, Sebi undertook an inspection during the period August 29 to August 30, 2002. However, there was not much improvement and the conflict between various functionaries continued to exist, Sebi added. The exchange also failed to adopt the accounts for the years 2000-01 and 2001-2002, indicating financial mismanagement. Accounts for the year 2001-2002 are yet to be adopted. Therefore Sebi was of the opinion that the council of management of the excange has failed to ensure proper governance, implementation of the provisions of the SCRA, byelaws of the exchange and Sebi directions.
