Ashok Chawla may Be­come NSE Chair­man

The Economic Times - - Markets: Beating Volatility -

Mum­bai: The Na­tional Stock Ex­change (NSE) has nom­i­nated Ashok Chawla, the for­mer head of the Com­pe­ti­tion Com­mis­sion of In­dia, to be­come its new chair­man, three sources close to the mat­ter told Reuters. The nom­i­na­tion comes af­ter NSE said on April 6 that SB Mathur had stepped down as chair­man af­ter com­ple­tion of his term of of­fice.

Chawla’s ap­point­ment at the coun­try’s big­gest bourse would need to be ap­proved by Se­cu­ri­ties and Ex­change Board of In­dia which over­sees ex­changes in the coun­try.

“It’s not fi­nalised yet,” said one of the sources re­gard­ing Chawla’s ap­point­ment, adding a de­ci­sion from Sebi could come as early as next week. The Na­tional Stock Ex­change and Sebi did not re­spond im­me­di­ately to re­quests for com­ment.

If ap­proved, Chawla would be­come chair­man at a time when NSE is be­ing crit­i­cised by some of its mi­nor­ity share­hold­ers over the tim­ing for a planned list­ing and ac­cused of cor­po­rate gover­nance lapses. NSE has publicly re­jected th­ese ac­cu­sa­tions.

Five share­hold­ers, in­clud­ing SAIF II-SE In­vest­ments Mau­ri­tius and Nor­west Ven­ture Part­ners last month said NSE had “bla­tantly dis­re­garded” the in­ter­est of its mi­nor­ity share­hold­ers, in­clud­ing through a lack of com­mu­ni­ca­tion and mis­rep­re­sent­ing min­utes of meet­ings.

“Some of the ac­tions of de­vel­op­ments over the re­cent past are nei­ther aligned with share­hold­ers’ in­ter­ests nor in line with in­dus­try best prac­tices on cor­po­rate gover­nance,” th­ese share­hold­ers wrote in a let­ter dated March 7 and ad­dressed to for­mer NSE chair­man SB Mathur that was seen by Reuters.

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