Ashish Chauhan resigns as BSE chief

By Ashley Coutinho

Ashish Chauhan has tendered his resignation as the managing director and chief executive officer of BSE, the country’s oldest bourse.

Chauhan had joined the BSE as deputy CEO in 2009 and was made MD and CEO for a period of five years from November 2, 2012. His second five-year term as BSE chief was scheduled to end on November 1 this year.

An exchange filing by BSE on July 18 said that Chauhan had tendered his resignation. This is a day after the NSE announced his appointment as the new MD and CEO.

Chauhan’s appointment at NSE is subject to acceptance of the offer made to him and fulfilment of the terms and conditions, including approval from the NSE shareholders.

The approval from NSE shareholders seems like a mere formality after the regulator’s nod for his appointment, said a shareholder: “I would be surprised if any of the shareholders are going to be unhappy about his appointment.”

Chauhan will be taking over the top job from Vikram Limaye, whose five-year term at NSE ended on July 16. Limaye declined to seek a second term.

In the meantime, an internal executive committee is expected to run the affairs at NSE. The committee comprises the following: Group CFO and head of corporate affairs Yatrik Vin; chief regulatory officer Priya Subbaraman; chief enterprise risk and information security officer Somasundaram KS and chief technology and operations officer Shiv Kumar Bhasin. The committee will be dissolved after the new MD & CEO assumes office.

Chauhan’s appointment comes at a time when NSE is facing regulatory probes with regard to governance lapses as well as a scam related to its co-location facility.

Former chief Chitra Ramkrishna is being probed for running the exchange operations at the behest of an unnamed yogi. In March, the NSE advertisement, seeking a new chief, had stressed on candidates with a track record of strengthening corporate governance, experience in a listed company and having led an organisation through an initial public offering.

V Balasubramaniam, MD and CEO of India INX, a subsidiary of BSE; Sundararaman R, chief operating officer – India at Bank of America; Mrugank Paranjape, MD & CEO of NCDEX e Markets; Neeraj Kulshrestha, BSE’s chief regulatory officer; GV Nageswara Rao, former MD & CEO of NSDL and R Duraisamy, former Sebi official and member of National Company Law Tribunal (NCLT) are said to be among those in the race to lead BSE.

BSE declined to comment on the progress it had made in selecting a new chief.