Ashishkumar Chauhan, currently managing director and CEO of BSE, will soon take over as head of the National Stock Exchange, which is the country’s largest exchange by market share.
According to people familiar with the development, his appointment has been cleared by capital markets regulator Securities and Exchange Board of India (Sebi) and a formal announcement is expected as early as tomorrow.
A statement from NSE says Sebi has approved Chauhan’s name for the position of NSE’s managing director and CEO and the exchange’s board has put in place a framework for the interim period.
“An internal executive committee comprising Mr. Yatrik Vin, Group Chief Financial Officer and Head of Corporate Affairs, Ms. Priya Subbaraman, Head of Regulatory, Mr. Somasundaram KS, Head of Corporate Risk and Corporate Security information and Mr. Shiv Kumar Bhasin, Chief Technology Officer and Chief Operating Officer has been constituted for the purpose of managing the affairs of the company,” he said while adding that “the committee will be dissolved upon of the entry into office of the new Director General and Chief Executive Officer”.
Chauhan’s term, who has worked for the ESB since 2009, is due to end in November, but he is expected to step down shortly after an official announcement.
At NSE, he will succeed Vikram Limaye who joined the exchange as Managing Director and CEO in 2017 and whose term ended on Saturday July 16. In March, Limaye announced that he was not interested in a second term on the exchange.
“I have informed the Board that I am not interested in pursuing a second term and therefore will not be applying or participating in the ongoing process. My term ends on July 16, 2022,” had -he declares.
Interestingly, for Chauhan, joining NSE can be called homecoming as he was part of the founding team of NSE – a team that was handpicked by the late RH Patil, the founder of NSE. He was at the NSE from 1993 to 2000.
For Chauhan, the second stint at NSE, however, would be quite interesting, to say the least. The IIT and IIM alum will join the helm at a time when the swap has been marred by a series of controversies.
The co-location affair and subsequent investigation saw some of its former senior officials, including CEO and CEO Chitra Ramkrishna and his trusted aide Anand Subramanian, who was also the group’s COO, arrested.
Additionally, the exchange has had its name dragged into an alleged wiretapping case in which high profile names have been implicated, including that of its former chiefs Ramkrishna and predecessor Ravi Narain.
The exchange, for its part, said it had closed all the gaps and strengthened the level of governance, although there still seems to be a perception that there is still a lot to do, with the market watchdog watching. also closely the stock market.
This is gaining momentum as NSE’s plans to go public through an initial public offering (IPO) have gathered dust with Sebi yet to approve its draft document. Ongoing investigations by various law enforcement agencies, including the Directorate of Law Enforcement (ED) and the Central Bureau of Investigation (CBI), have only raised further concerns. regulations.
Interestingly, Chauhan, who started his career as a banker at IDBI, could play a key role when he takes over the corner office of NSE, as he already has experience of taking a public scholarship – BSE went public in 2017 – and is also well versed in stock market and trading business.
NSE, which began operations in 1994, was primarily established because policymakers felt there was a need for a technology-focused stock exchange at a time when BSE – Asia’s oldest stock exchange established in 1875 – was under the strict control of the broker lobby.
A lot has changed since then and NSE has far surpassed its much older rival – it holds a virtual monopoly in equity derivatives, although the segment has regularly been criticized for encouraging speculation rather than wealth creation .
For Chauhan, who was Chairman and CIO of Reliance Group from 2000 to 2009 and also CEO of the Mumbai Indians Group IPL team, there will be a lot to do as there is still a lot of work to be done to bring the NSE home. in order, especially after the recent round of controversy.