Sebi sets aside order involving Bhave

The committee,which was set up by the Sebi as suggested by the Finance Ministry,had recommended that Sebi should issue a code of conduct for depositories. G Mohan Gopal and V Leeladhar,in their order,also asked the Sebi to ensure that an assessment of the adequacy of the institutional arrangement to ensure the integrity of the depository system.

The board had delegated its authority to the committee to dispose of three quasi-judicial proceedings pending against NSDL. The committee entered findings that the board failed as a regulator,while disposing of two matters relating to IPO Irregularities and DSQ Software Ltd. These findings against the board are outside the confines of delegation and therefore,these are without the authority of law. These findings,which have vitiated these two orders,cannot be severed from the rest of the orders. Hence these orders are null and void and are non-est, Sebi said.

In the interest of transparency,it Sebi decided to make public the two non-est orders, Sebi said in a release. However,the board has decided to release the order passed by the same committee,relating to Rajnarayan Capital Market Services Ltd,with a direction that it be served on the affected parties.