Notification F.No. SEBI/LE/43510/2005, dated June 30, 2005 (“said notification”) the super-session of the Governing Board of the Uttar Pradesh Stock Exchange Association Limited. - S.O. No.457(E) - SEBI/LE/63413/2006 - SEBI

Securities and Exchange Board of India Notification Mumbai, the 28 th March, 2006 S.O. 457(E).- Vide notification F.No. SEBI/LE/43510/2005, dated June 30, 2005 ( said notification ) the super-session of the Governing Board of the Uttar Pradesh Stock Exchange Association Limited ( Governing Board ) was extended by the Securities and Exchange Board of India ( SEBI ) upto March 31, 2006 and Shri M. N. Sabharval, IPS (Retd ) continued as an Administrator to exercise and perform all the powers and duties of the Governing Board. I have noted that the Administrator has initiated various corrective measures in the functioning of the Exchange, some of which require sustained follow up action. I have also noted that Shri K C. Pandey, Executive Director of the Exchange is under suspension since August 26, 2005, resulting in a vacuum at the top management. Shri Pandey has filed a writ petition before the Hon ble Allahabad High Court challenging the enquiry proceedings initiated against him. The Hon ble High Court has granted a stay restraining the UPSE from taking any action against Shri Pandey on the basis of the enquiry report submitted by the enquiry officer, till further orders. Further, the findings of the recent special purpose inspection carried out by SEBI in September, 2005 regarding comprehensive risk management framework revealed certain weakness in the surveillance system of the exchange including non-maintenance of Base Minimum Capital, non-recovery of margins at appropriate levels, etc. Therefore, I am of the considered view that in order to further streamline the functioning of the Exchange, time required to complete the process of election and constitution of the new Governing Board and also to complete the process of corporatisation and demutualisation, the period of supersession of the Governing Board required to be extended for a further period of six months. In view of the aforesaid, in exercise of the powers upon me under Section 19 of the Securities and Exchange Board of India Act, 1992 read with Section 11 of the Securities Contracts (Regulation) Act, 1956 and Notification no. S.O 573 dated July 30, 1992 issued by Central Government, the supersession of the Governing Board of the Uttar Pradesh Stock Exchange Association Limited as ordered in the notification is hereby extended for a further period of six months upto September 30, 2006, with effect from April 1, 2006. Shri MN. Sabharwal, shall continue as the Administrator and shall exercise and perform all the powers and duties of the Governing Board, during the period so extended Shri M.N. Sabharwal may assistance of such persons as he deems necessary in discharge of his duties as Administrator. [F. No. SEBI/LE/63413/2006] G. ANANTHARAMAN, Whole Member