Financial Daily from THE HINDU group of publications
Wednesday, Oct 02, 2002
Industry & Economy - Economic Offences
SEBI ties up with States to probe misconduct in SEs
THE Securities and Exchange Board of India has for the first time decided to pursue ``cases of misdemeanour and misconduct'' that have occurred on various stock exchanges in association with the respective State Governments.
The market regulator has already rolled out its maiden initiative in this direction, thanks to its recently developed rapport with the West Bengal Government, which was pursuing a case concerning the Calcutta Stock Exchange. The State Government's action has led to the on-going investigation by the local police into the March 2001 payment crisis on the CSE.
Mr Pratip Kar, Executive Director of SEBI, said the regulatory body was working on ways to secure the help of the State Governments on various matters concerning instances of misconduct that had hurt investors. No particulars were available at this juncture.
``In certain ways, our powers are limited. In fact, there are areas where we can do very little. We propose to combine our strengths with those of the States'', he said.
The latest SEBI stance has assumed importance in a situation marked by such developments as price rigging in individual stocks. The regulator had in the past initiated action in a number of cases that had harmed the interests of common investors.
The regulator, it was also pointed out in this context, would support any action on the part of the local authorities to check misconduct on the bourses.
The West Bengal Government had done it in the CSE case, and ``this was a fit case for our joining hands with the State'', Mr Kar maintained.
He was speaking to newspersons here on Tuesday after inaugurating a conference on Corporate Governance Rating in Kolkata.
The SEBI official, who refused to divulge details of the correspondence that had taken place between it and the State, acknowledged the role played by Mr Jawhar Sircar, Secretary, Department of Commerce and Industry, West Bengal and member of the CSE board, in this regard. He, incidentally, described Mr Sircar as ``a long-time friend and alumnus''.
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