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Sebi bars Rathi for two years, lets of Rathi Global, Navratan

The Securities and Exchange Board of India, in a majority decision, on Friday barred the former Bombay Stock Exchange president Anand Rathi from holding any position of a director or trustee of any capital market institution for two years effective March 12, 2001.

The market regulator has also suspended his two firms, Anand Rathi Securities Ltd and Rathi Capital and Securities Pvt Ltd, for nine months from the same date but let off Rathi Global Finance Ltd as it was found not doing any business and had surrendered its membership of OTCEI (Over The Counter Exchange of India).

Another firm, Navratan Capital and Securities Pvt Ltd, which was also banned from trading in March, has also been let off and no penalty was imposed as it was under the control of Gupta family and not under the Rathi family, Sebi said in its order.

Friday's order was a 2:1 decision for violation of Sebi's code of conduct for brokers and Sebi chairman D R Mehta gave a dissenting note stating that the two companies Rathi Global Finance and Navratan Capital be discharged and not be considered for penalty.

Rathi, when contacted, said, "I will examine the order legally and challenge it in either SAT or move the court. The order is legally not tenable in respect of the penalties on myself, Anand Rathi Securities and Rathi Capital & Securities."

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