Sebi supersedes board of Ahmedabad bourse

The Securities and Exchange Board of India has decided to supersede the governing board of Ahmedabad Stock Exchange for its failure to take immediate steps to curb unofficial trading in securities and launch an investigation against erring members of the exchange.

An order to this effect was passed by Sebi chairman G.N. Bajpai and despatched to the exchange on Wednesday. The Sebi order will come into force with immediate effect and will be valid for a period of one year. The regulator has appointed P.K. Ghosh as the administrator of ASE to look after the day-to-day management of the exchange. The administrator is expected to take charge on Friday. ASE has become the second stock exchange to be superseded after Sebi decided to dissolve governing body of Uttar Pradesh Stock Exchange Association Ltd in July 2002.

Bajpai also observed in his order that “the governing board, which cannot even think of ways and means to ensure that illegal activities are not carried on, does not deserve to continue”.