BSE board likely to discuss charges against S Ravi

The BSE plans to discuss the ongoing investigation against its chairman, Sethurathnam Ravi, named in the Central Bureau of Investigation’s (CBI’s) First Information Report in connection with the alleged ~6 billion IDBI-Aircel loan fraud. The board of directors of the exchange will meet on Friday to declare the March quarter results.

The CBI has registered a case against 38 people, including former Aircel promoter C Sivasankaran, his company’s executives, along with some of the public interest directors including Ravi, appointed by regulators.

Ravi had been nominated by market regulator Securities and Exchange Board of India (Sebi) as a public interest director at BSE in November 2017. Sources say the BSE board may seek suggestions from the market regulator over alleged charges against him.

Sources say the board is likely to be apprised about the case and the role of the chairman in the said matter. The board could also discuss the legal implications and vet the situation from the corporate governance point of view, said a source in the know. In response to an email query, the BSE declined to comment. Sources say the Sebi is also likely to review the appointment of Ravi.

Apart from IDBI Bank and the BSE, Ravi is also on the boards of other companies, such as Aditya Birla Health Insurance, UTI Trustee Company and SBI-SG Global Securities. He is also a member of Sebi’s takeover committee.

Legally, an independent director may continue to hold office until investigative agencies file a prosecution charge against them. However, shareholders could propose an ordinary resolution for their removal, if they think corporate governance standards are getting compromised.