The resolution to this effect was passed at the recent extra-ordinary general meeting, said DSE vice president Brij Bhushan Sahny. At the meeting, DSE members said the accused members be given adequate opportunity to plead their case before placing them under suspension. With this decision, now an inquiry officer would give a notice to the accused member returnable within 30 days. The accused will give reply within this stipulated time and he will be suspended only when his involvement is proved, Sahny said.

At present, the whole system of suspending members is not organised and there is no provision of court of inquiry. Article 103 of the DSE constitution, which deals with the issue, was hereby amended to put a clause of appointing the inquiry officer. The DSE's decision would be sent to the Securities and ExchangeBoard of India (SEBI) for final approval.

With this, a retired high court judge, who is in the DSE board, could be made an inquiry officer. However, it will be entirely upto the board to choose anybody in that post, aid the DSE vice-president. Besides, it is yet to be decided whether an inquiry officer will be appointed for specific period or for a particular case. The DSE board would take up the issue at its board meeting later this month, he said.

The system would be as per the Sebi's code of conduct and will be in line with Sebi's own system of inquiry, Sahny claimed. ``We do not want any person who is not guilty to be punished. As such, a proper system would be put in place to impose penalty of suspension on members only after they are found guilty by the inquiry officer,'' he said.

Former DSE president Paramjeet Singh, who had been suspended and was allowed to rejoin the local bourse only after out of court settlement was reached, alleged that there are no specific rules at the exchange on probinginto financial irregularities. ``One fine morning you find yourself to be accused of financial irregularities and the next morning you are suspended and the jungle laws have to be amended in line with Sebi's system of inquiry so that Justice prevails over arbitrariness, he said.