PIL seeks probe into sale of BSE shares to six firms

Mumbai: Two individuals associated with Trade Unions Joint Action Committee (TUJC) have filed a public interest litigation in Bombay High Court demanding formation of a special investigation team to probe the sale of shares of Bombay Stock Exchange (BSE).

The PIL claims that six foreign companies have bought 26 percent shares of BSE and that the Securities and Exchange Board of India (SEBI) surprisingly cleared this deal.

Kiran Mehta, a shareholder of BSE, and Shaukat Ali Betgeri, a social worker, filed the petition. They alleged that the BSE has not followed the rules of foreign investment and SEBI guidelines on corporatisation and demutualisation of BSE. On May 20, 2005, the SEBI had allowed the sale of 51 per cent shares to the public.

However, both petitioners claim that information obtained from RTI revealed that 26 per cent had been sold to six foreign establishments. Five per cent each went to Deutsche Boerse AG and Singapore Exchange Ltd whereas 4 per cent was sold to Katriel Investments Ltd, Dubai Financial LLC, Caldwell Asset Management Inc and Atticus Mauritius Ltd.

The petitioners and TUJC co-convenor Vishwas Utagi demanded that the SIT investigate this sale. “According to Indian laws, if 26 per cent shareholders comes together, they can stake claim over the company. In this case, even SEBI has allowed the deal. That’s why it must be investigated,” Mr. Utagi said.

Meanwhile, the petitioners also have raised the issue of Occupation Certificate (OC), which has not been granted to the BSE building yet.

“We have requested the Bombay High Court to expedite this long-pending case. It needs to be clear to make ownership of the building public,” the petitioners said.