Members? plea to probe irregularities in UPSE | india | Hindustan Times
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Members? plea to probe irregularities in UPSE

MEMBERS OF the UP Stock Exchange Brokers Association led by its president Sushil Kanodia have submitted a memorandum to the Union Minister for Finance, urging him to conduct a high level probe into the mismanagement at the Uttar Pradesh Stock Exchange (UPSE).

india Updated: Mar 29, 2006 00:38 IST

MEMBERS OF the UP Stock Exchange Brokers Association led by its president Sushil Kanodia have submitted a memorandum to the Union Minister for Finance, urging him to conduct a high level probe into the mismanagement at the Uttar Pradesh Stock Exchange (UPSE).

In a memorandum, they have alleged that the administrator of the UPSE has been mismanaging the body and the role of Security Exchange Board of India (SEBI) has also been quite indifferent. Members alleged that administrator was ignoring the financial rules. Kanoda raised several pertinent questions about the wrong decisions of the Security Exchange Board of India (SEBI) it took in connection with the UPSE.

Memorandum also apprised the Union Minister for Finance of all the irregularities, the SEBI committed. Kanodia alleged in the memorandum that the administrator has been running the exchange on his whims and fancies ignoring the financial rules.

He said it was wrong on the part of SEI to appoint a retired police officer as the administrator of the most prestigious financial institution of the country, as he did not have the basic knowledge of finance management. He alleged that the administrator simply acted upon the advices of his subordinates, who misguided him on every stage and forced him to go ahead with wrong decision, which caused resentment among the broker community.

He said that the suspension of the then executive director (ED) KC Pandey was unjustified, as it was done on an anonymous and unsigned complaint letter. The charges framed against ED were not mentioned in the complaint. Besides, the complaint was against two employees while the action was initiated against ED only.  Besides, under the rules, a contractual employee like the administrator enjoyed no rights to suspend or terminate any ex officio member like the ED. The administrator suspended the ED but the SEBI did not take any notice of this irregularity.

Several such objections to the functioning of the SEBI and UPSE were raised in the memorandum. The finance minister has reportedly assured to probe into the matter and to initiate action.

Meanwhile, the manager (Pand M) Umesh Kumar Dixit has informed that the final date of hearing in the case relating to suspension of the executive director of the UP Stock Exchange (UPSE) KC Pandey, has been fixed for April 7. He said Pandey was paid the subsistence allowance. However, the High Court has granted an interim stay order for proceeding further on the one-man inquiry set up against him by the exchange authorities.

He informed that the one-man inquiry had found Pandey guilty of 15 counts and on the basis of the report he was suspended.  Pandey against the order of suspension, preferred a writ against in the High Court. Final decision about his claim of re-instatement would depend upon the judgment of the court.