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SAT sets aside Sebi order against Rathi

BS Markets Bureau

The Securities Appellate Tribunal has modified the Securities and Exchange Board of India order restraining Anand Rathi, former president of Bombay Stock Exchange, from holding a position in any capital market public institution for a period of two years to one year, which would expire on March 12, 2002.

SAT has also set aside Sebi's order of suspension against Anand Rathi Securities and Anand Rathi Direct.

In it's order, SAT has noted that it is thus clear that if Rathi is a fit and proper person to do business following the same yardstick the entities owned and controlled by him also should be eligible to carry on the business.

Since the suspension of registration of the two appellant companies is linked to the conduct of Rathi, for reasons stated above, their suspension is not tenable and deserve to be set aside.

Meanwhile, in respect of the order passed against Rathi, SAT was of the view that in light Sebi detailed enquiry, which has given a clean chit absolving him of any role in depressing the market.

It is, therefore, felt that restraining Rathi holding directorship in any capital market public institution for a period of two years is disproportionate to the gravity of the wrong doing by him and actual fallout thereof.

Thus taking into consideration the totality of facts of the case that it would be but fair and reasonable to restrain Rathi from holding any post of director/office bearer of stock exchanges for one year.

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