PATNA, Nov 4: The Magadh Stock Exchange council of management has split on the issue of replying to the showcause notice issued by SEBI. The showcause, signed by SEBI chairman D R Mehta, lists 12 charges against the council of management. Issued on October 8, it had asked the members to appear before SEBI on October 31.

SEBI has charged the council with arbitrary functioning and breakdown of internal administration. It has also cited payment delay, bad deliveries and the failure of members to maintain a minimum capital base of Rs 4 lakh.A member disclosed that the October 31 meeting had not taken place.

Instead, the council of members have asked SEBI to show the documents and evidence that formed the basis of its notice. ``We have sent four letters to SEBI demanding the documents. Our first letter was sent on October 22, and we are waiting for a reply,'' the member said.

R N Pandey, the president of the bourse, had called a meeting of the council on November 1. But the meeting could not be held because of the lack of quorum. It has now been rescheduled for November 11.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.