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Sebi restrains Anand Rathi from trading

In keeping with a directive of the Bombay High Court, Securities and Exchange Board of India (Sebi) on Friday passed a 'reasoned order' restraining former president of Bombay Stock Exchange Anand Rathi and his firms from trading on the bourse.

A copy of the order was delivered to Rathi, SEBI sources said.

"Three members of Sebi board including chairman D R Mehta stood by the decision of the regulatory body of not allowing Rathi from conducting business in view of his alleged role in seeking inside information in select scrips from surveillance department of BSE," sources said.

However, Sebi full-time member Jayant Verma has given a dissenting note saying, "there is no need for stoppage of business," the order said.

The other members of the panel include advisor to finance minister Rakesh Mohan and RBI deputy governor S P Talwar.

Hearing a petition by the former BSE president, High Court on March 22 had directed Sebi to hear Rathi once again and pass a reasoned order by Friday. The petition would come up for hearing on Saturday.

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