In New Delhi: Experts say that Ashish Kumar Chauhan, the departing CEO of the BSE, who is about to re-join the NSE after 20 years, will have a difficult time leading the market given its problems with governance, a co-location scam, technical issues, and a phone-tapping investigation. In addition, Chauhan will be in charge of the National Stock Exchange’s (NSE) protracted public offering of shares.
Chauhan was a founding member of the NSE but left in 2000 to take on various positions at the Reliance Industries group. He later returned to the stock market as the BSE’s deputy CEO in 2009 and then as CEO in 2012. After the bourse became involved in the co-location incident, where it was claimed that some brokers were unfairly granted access to the exchange data feeds over other members, the NSE’s public offering had been derailed. It is acknowledged that Chauhan handled the maiden share sale of BSE successfully. The Securities and Exchange Board of India (Sebi), which oversees the capital markets, has cleared his name as the NSE’s next CEO, but his start date is still uncertain. His current contract with the BSE runs through November, although he is free to leave and join the younger, much bigger exchange before then.
Experts predict that Chauhan would face numerous corporate governance and legacy difficulties as soon as he joins the NSE.” The NSE is currently facing more basic issues that require structural adjustments to address. Due to the issues the exchange encountered in 2021, technological stability is one of the major concerns “said Diwahar Nadar, assistant professor at the NMIMS Mumbai’s Anil Surendra Modi School of Commerce. Narinder Wadhwa, president of the Commodity Participants Association of India (CPAI), claimed that the problems facing the NSE are strategic. According to insiders, Chauhan’s experience qualifies him as a “virtuoso of augmentation,” as evidenced by the BSE’s bolstering of its technological arsenal to make the exchange one of the fastest in the world. According to Nadar, Chauhan’s accomplishment of taking the BSE public makes him the ideal candidate to bell the cat and complete the long-awaited process of listing NSE.
For Chauhan, who was one of the founding employees of the NSE and worked there from 1992 to 2000, it’s a bit of a homecoming. He is credited with helping to establish India’s first fully automated screen-based trading system and the country’s first commercial satellite communications network while working at NSE. Chauhan is credited with boosting the BSE’s profits, making it the fastest exchange in the world with a response time of 6 microseconds, introducing mobile stock trading to India, and diversifying into new markets like spot markets, power trading, distribution of mutual funds and insurance, as well as currency, commodities, and equity derivatives.
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