The newly-appointed managing director of the Vadodara Stock Exchange,G Someshwar Rao,has been asked to resign by members of the board of directors less than a month after chairman Samir Joshi resigned. This is likely to further deepen the crisis at the regional bourse that is already struggling to meet guidelines of the Securities and Exchange Board of India to stay afloat.
It is learnt that members of board have asked Rao to resign on the ground that hes unable to understand either Gujarati or Hindi,which makes his conversing with the board difficult. Four shareholder and three public interest directors of the board have verbally asked him to resign or face termination,which has not gone down well with the MD who is threatening legal action.
The board has asked Rao to resign three months after he was appointed by the market regulator following the resignation of his former counterpart,M G Sheikh. The move comes a few days ahead of the meeting of members of SEBI,shareholders and trading members,in the presence of the MD,scheduled on October 11.
Rao was appointed the VSE MD by the SEBI for three years. He is originally from Hyderabad.
He was not happy with the ongoing confrontation with the trading members and shareholder members of the VSE.
He said that he will approach the court against what he termed as forceful and unlawful termination. The Board has violated so many rules,and now it is violating another rule by forcing me to resign. I have not resigned yet and am waiting for formal termination letter from the board. So far,I have been conveyed this only orally, he said.