MUMBAI, Jan 29: Sebi is expected to take up the issue of making changes in the bye-laws of the BSE to enable a third term for the exchange's president, MG Damani. Members are expected to give their nod to the proposal at the bourse's EGM on February 2.According to sources, the market regulator is believed to be positively inclined towards endorsing the decision of the exchange. "A final decision would only be taken by the board," said a Sebi source. Officials declined to comment on the development. The move to hold an EGM has come in the wake of a memorandum submitted by about 120 general-body members of the exchange.
Interestingly, sources say that it might well be smooth sailing for Damani, as according to the bye-laws of the exchange if five members of the general body which currently comprises 600-odd BSE members, forward a request, the governing board has to abide by it and take it up at an EGM.
In this case the response from the members has already been overwhelming with as many 120 memberspushing for the extension of Damani's term. uThe meeting will also decide on the suitable amendments in rule 114 of the exchange for facilitating such an extension.
Directive 114, as defined by Sebi and included in the bye-laws of the exchange, allows a president a term of 2 years. Besides, such a member can continue to remain on the governing board for another one year.
"The tempo set by our president has to continue. Various incomplete projects can be best handled by him," commented a BSE director.
The governing board, which also comprises public and Sebi representatives, has, however, merely an academic role to play once the amendments are finalised by the members of the exchange.
The governing board is likely to meet on February 10 to consider these amendments, which would be finally sent to Sebi for clearance.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
