Order U/s 11 of the Securities Contracts (Regulation) Act, 1956 Superseding the Council of Management of the Magadh Stock Exchange.

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....ge Association conducted by SEBI and complaints from Elected Directors, Public Representative Directors, SEBI Nominee Directors etc. irregularities and mismanagement were observed in the functioning of the Stock Exchange. Following are the instances of irregularities and mismanagement observed :-- (i) Ineffective functioning of the Council of Management and factionism among elected members, (ii)....

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.... the above instances of mismanagement and irregularities. The Council was given 15 days to reply in writing to the notice and seek personal hearing, if so required. 3. The Council of Management of the Magadh Stock Exchange did not care to reply to the show cause notice or deny any of the charges levelled therein. By a letter dated October 28,1997 opportunity of personal hearing on October 31,1997....

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....considered the charges levelled against the Council of Management as per Annexure-1 of the aforesaid letter of Chairman, Securities and Exchange Board of India. The substance of the charges reflects the true and factual position as existing in Magadh Stock Exchange Association today. Therefore, the Council of Management requests SEBI to take immediate appropriate action under section 11 of Securit....

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....led against them. On the contrary out of 13 council members, 7 council members have stated that the charges levelled by SEBI "reflects the true and factual position as existing in Magadh Stock Exchange". 6. In view of the above facts, I am convinced that the Council of Magadh Stock Exchange has failed in ensuring proper governance and implementation of the provisions of the SC(R) Act, Bye-laws of....