The Securities Exchange Board of India (SEBI) has cancelled the appointment of Satishkumar Nandangudi as executive director of the Saurashtra Kutch Stock Exchange (SKSE).
A local investor association had opposed the appointment of as it was not cleared by Sebi. The markets regulator in a letter, a copy of which is with Business Standard, addressed to the SKSE Ltd management states that the appointment of the executive director is subject to prior approval of the regulator.
In this case, however, no approval of Sebi was granted and was in violation of its orders. The regulator has further instructed the ED to immediately relinquish office.
“This letter was already transmitted via facsimile transmission to SKSE Ltd and has yet not been disclosed by the executive director Satishkumar Nandangudi - so there is something fishy in context to his appointment, otherwise he should have vacated the office by 6th January 2006 evening - the closing hours of office,” said Ashok Koyani, officiating chief executive officer, SKSE Securities Ltd.
Satishkumar Nandangudi, however, was not available for comments.
The city-based investors association registered with Sebi had addressed a letter to the finance minister P Chidambaram, requesting the ministry to intervene into the matter and cancel the appointments of the executive director and chief executive officer.
“We have also requested ministry to suspend the present board of directors of SKSE Limited and appoint an administrator for transparent functioning of the bourse,” said Ramji Mavani, founder member of SKSE Ltd and representative of the investor association.
Himanshu Bhayani / Rajkot January 11, 2006