HC allows Rathi to amend petition challenging Sebi decision
April 4
Sidharth Shah in Bombay
Bombay High Court on Saturday allowed former president of Bombay Stock Exchange Anand Rathi to amend his petition challenging the March 13 decision of Securities and Exchange Board of India (Sebi) to debar him and his firms from trading on the bourse.
On Friday, in keeping with a directive of the Bombay High Court, Securities and Exchange Board of India (Sebi) had 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.
On Saturday, the petition was adjourned for admission on April 4 as Rathi urged before justice Ajit Shah that he wished to amend the petition in view of Friday's Sebi order restraining him from conducting his business because of the alleged inside information in select scrips sought by him on March 2 from BSE's surveillance department.
Sebi's counsel, Goolam Vahanvati, told the court that Rathi had a remedy to urge the appellate authority to hear him on the Sebi's move to restrain him and his firms from trading.
Rathi's counsel, Abhishek Singhvi, denied any lapse on his client's part. He said Rathi had merely performed his duty to monitor the stock market situation and become aware of the abnormal trends in the trading on the exchange.
He said Rathi was president of the stock exchange and in that capacity he was answerable to finance minister, media and investors. He was only trying to find answers regarding fall in market but denied that Rathi had made inquiries on sales/purchases of certain scrips.
Earlier Sebi sources had 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."
However, Sebi full-time member Jayant Verma had 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.
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