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DSE to hear Sodhi on Sebi ex-gratia report

Parul Gupta & P Vaidyanathan Iyer

The Delhi Stock Exchange board has decided to invite comments from former DSE executive director S S Sodhi on the Securities and Exchange Board of India report which reveals irregularities in ex-gratia payments to him.

"The board has unanimously decided to forward the report to Sodhi and give him three weeks' time to come back with his comments," DSE president Sudhir Joshi said. It is, however, learnt that several members have pressed for an enquiry into the alleged irregularities committed by Sodhi.

Exchange sources added that all the cheques are required to be signed by at least three people at the president and director levels. "It is not as if Sodhi made extra payments to himself. The other two people are also equally responsible," they added.

The Sebi report had found irregularities in ex-gratia payments drawn by Sodhi. Sebi had stated that salary and perquisites drawn by Sodhi were in accordance with approved pay-package but said that "on the whole, approval of restoration of Sodhi's pay-package in May 1996 is apparently a case lacking transparency".

The board had conducted an investigation into Sodhi's salary structure and other perquisites paid to him following complaints by a former DSE president BB Sahny and two members of Parliament.

The report had stated that despite the conflict of interest, Sodhi was a signatory to the board resolution authorising payment of ex-gratia to employees including himself.

The report indicated that Sodhi was made ex-gratia payments totalling Rs 711,000. He was paid Rs 168,000 in 1997-98, Rs 158,000 in 1998-99, Rs 180,000 in 1999-2000 and Rs 204,000 in 2000-01.

Sebi also pointed out that the leave travel concession encashment of Rs 86,000 to Sodhi during 1999-2000 was not in accordance with the relevant rules of the stock exchange as he did not avail the stipulated privilege leave of seven days for the said encashment.

Sources added the controversy arose because prior to Sodhi, all such ex-gratia payments were included in the board minutes but later these payments were not included.

The controversy over Sodhi's salary package also arose because of two changes in his package. The board had reportedly cleared a salary package at a board meeting on September 5, 1995, which was reduced at another meeting on October 21, 1995.

The appointment letter given to Sodhi offered the reduced package.

At another meeting on May 4, 1996, however, the package was revised to one proposed earlier on the grounds that the October meeting had proposed reversal to the original package after a few months and the reduction for the interim period was marginal.

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