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Sebi told to file reply by Mar 19 on Rathi's petition

The Bombay high court has directed the Securities and Exchange Board of India (Sebi) to file by March 19 an affidavit in response to a petition filed by former president of Bombay Stock Exchange, Anand Rathi challenging its decision to prohibit him and his firms from trading.

The petition, which also challenges Sebi's decision to stop Rathi from acting as a member director of BSE, will come up for admission before justices Ajit Shah and Shiavax Vajifdar on March 19.

Directing Sebi to file an affidavit, the bench on Wednesday refused to stay the decision of the regulating body saying that there was no case for granting interim relief at this stage.

In keeping with a Sebi directive, BSE, on March 13, deactivated Rathi's bolt thereby preventing him from trading on the exchange. Being aggrieved, Rathi moved the high court.

Rathi's counsel, Virendra Tulzapurkar, submitted that Sebi's order was passed without following the principles of natural justice. He also contended that the post decision hearing was given to his client after ten days thereby making it a nullity.

If Rathi was not allowed to trade, his business would be badly affected, his counsel said.

Sebi's counsel, Goolam Vahanvati, argued that there was no question of following the principles of natural justice at this stage because due to Rathi's alleged actions, the confidence of the investors had been shaken.

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