"In accordance with the exchange's byelaws the resignation need not be accepted by the board. It automatically comes into effect," explained JC Parekh, president of BSE.

Banthia who tendered his resignation on Monday afternoon, said that his decision had been prompted by the pending litigation between his broking outfit Harvest Deal Securities Pvt Ltd and Sebi.

The Mumbai High Court had on Saturday vacated its earlier stay on the Sebi order although it granted the brokers a period of four weeks till which they could continue to trade in all scrips except the ones in which they had been charged for price rigging. This time was granted to them as an opportunity to appeal before the SupremeCourt.

"Pending the case, I have decided to resign from my post," Banthia told The Financial Express.

According to BSE sources, Banthia's decision could have been prompted by the BSE's byelaws (special resolution passed earlier during the year) which clearly states that `ipso facto' if any of the office bearer is debarred from trading or suspended from trading the member has to resign from his post. This according to sources, allows the exchange to maintain an egalitarian atmosphere where, in the absence of code of ethics for elected brokers, no office bearer misuses his position.

Interestingly, despite the various cases of price rigging filed against Banthia, brokers at large have expressed their resentment against his decision to step down.

Sebi in its order issued on October 30, debarred 18 brokers from trading. Banthia's broking outfit was also a part of the list of brokers who were debarred from trading from November 2 on the basis of their alleged involvement in price rigging of BPL, VideoconInternational and Sterlite and in the case of Banthia in Nedungadi Bank as well.

The board also finalised the annual accounts reporting a net profit of Rs 38 lacs for the year 1997-98. "We have transferred about Rs 60 crore to the trade guarantee fund. Currently the TGF stands at Rs 325 crore," said Parekh.