SEBI bars Rathi for two years

MUMBAI, NOV. 9. The Securities and Exchange Board of India, in a majority decision, today barred the former Bombay Stock Exchange President, Mr. Anand Rathi, from holding any position of a director or trustee of any capital market institution for two years effective March 12.

The market regulator has also suspended his two firms, Anand Rathi Securities Ltd. and Rathi Capital and Securities Pvt. Ltd., for nine months from the same date but let off Rathi Global Finance as it was found not doing any business and had surrendered its membership of Over-the-counter Exchange of India.

Another firm, Navratan Capital and Securities Pvt. Ltd., which was also banned from trading in March, has also been let off and no penalty was imposed as it was under the control of the Gupta family and not under the Rathi family, SEBI said in its order.

Today's order was a 2:1 decision for violation of SEBIi's code of conduct for brokers and the SEBI Chairman, Mr. D. R. Mehta, gave a dissenting note stating that the two companies Rathi Global Finance and Navratan Capital be discharged and not be considered for penalty.

Mr. Rathi, when contacted, said. ``I will examine the order legally and challenge it in either sat or move the court. The order is legally not tenable in respect of the penalties on myself, Anand Rathi Securities and Rathi Capital and Securities.''

- PTI

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