MUMBAI, February 13: The proposal by the brokers of the Bombay Stock Exchange to re-elect M G Damani as president of the BSE for a third term has run into a roadblock. It is learnt that the SEBI nominee on BSE's governing board, L K Singhvi, has resented its move to pass a resolution to this effect.The RBI nominee on the board, Chandramouli Saran, has also attached a dissent note, objecting to an extension of Damani's tenure. "At the meeting held on Tuesday, the SEBI nominee felt that the board could not pass a resolution to effect changes in its bye-laws to seek extension of the president's term. All it can do is to make a request to SEBI for the same," said a source. As per the exchange laws, a person cannot continue as president for three year continuously. After serving as president for two years, there should be a cooling period of at least one year before he can become the president for a third term.
Sources say the outcome of Singhvi's deliberations saw the governing board soften its stand andmake an application emphasising on the "request" aspect. Saran was also against the governing board's move to extend Damani's tenure.
Questioning the rationale behind extending the term, sources said the RBI nominee had attached his dissent note with the application forwarded to SEBI for its clearance on the issue.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
