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Deena Mehta, two others taken off BSE board

The Securities and Exchange Board of India (Sebi) on Wednesday upheld its earlier order to bar three broker-directors - Deena Mehta, Himanshu Kaji and Motilal Oswal - from acting as directors on the governing board of the Bombay Stock Exchange (BSE).

The three were given "post decisional hearing and they have been restrained from acting as directors of the governing board," Sebi chairman D R Mehta told reporters in Bombay.

The action was taken since there were instances of interference in the orderly functioning of exchange as a self regulatory body, he said.

Mehta said the decision had been taken under Section 11 B of the SEBI ACT 1992 in the interest of investors and the orderly development of the securities market.

Three other broker-directors - Jayesh K Sheth, Kirit B Shah and Niranjan K Nanavati - who were also restrained from working as directors had resigned from the governing board last month.

On the interim report on the allegations of price rigging in the scrip of Global Trust Bank, he said "it only mentions the instance of manipulation and SEBI has not named any company or person as being involved in it."

Asked about effects of GTB's decision to call off its merger with UTI Bank, he said "investigations pertain to price manipulations and action will be taken against those found guilty for indulging in such practices."

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