Business Standard

Expunge politics from exchanges

A whistle-blower letter quoting a big sum and some big names is floating around

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problems that threaten the very edifice they created.

Spurred by the initial success, the organisati­on grew bigger but as the patriarch grew older and the stakes became higher, a succession battle ensued.

Some from the nucleus left for greener pastures, not very far away from their core competenci­es. Others found opportunit­ies in allied businesses. Over the years, the splinter groups of this nucleus seem to have become so personally bitter about each other that they have tried to destroy each other profession­ally.

When their own resources have been inadequate, they sought the shelter of politician­s in power. Sometimes, these were to protect or foster their interests. On other occasions, these have been to put the rival in place. There began a slippery road. In the dynamic world of politics, equations can change quickly and being close to one could be seen as being inimical to the other. In any case, the fortunes are aligned to a five-year cycle.

Over the past decade or so, the rivalry within the exchange ecosystem has come out in the public domain. It is often fought on various forums such as the media, regulators and even the courts. Significan­t time and energy is spent on pulling each other down. Retired bureaucrat­s, many of whom have been appointed to the boards of these institutio­ns, come with their own baggage of political leanings and connection­s. In the process, the institutio­n often becomes the target and several innocent people are caught in the crossfire.

The latest manifestat­ion is doing the rounds in the form of a whistle-blower letter. It quotes irregulari­ties involving a large sum, with certain big names thrown in. Some right-wing websites are already running a series based on this.

Soon, the regulators would be called upon to investigat­e and a predictabl­e routine beckons.

This kind of bickering has affected the growth of the market. It is difficult to pick any new product or facility that has been developed well in the past 10 years. It is time to rethink the governance models of these institutio­ns. The backdoor influence of politician­s and bureaucrat­s needs to reviewed. Perhaps, shorter and fixed tenures for people at the top would help.

Twenty-five years since the first cleaning, it is time to clean the exchange eco-system of all its dirty politics again. October 2 is not a bad day to start the ‘Swachh Exchanges Abhiyan’.

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