The Bombay Stock Exchange (BSE) has seen some major changes at the top, with chairman Shekhar Datta and industrialist Jamshyd Godrej, both members of the exchanges governing board, and CEO Ashok Kumar Raut resigning in quick succession. Jagdish Capoor, the new chairman of BSE, spoke to Palak Shah on the way ahead for the oldest stock exchange in the country. Excerpts:
Its been almost six months since the BSE agreed to purchase a 26 per cent stake in NMCE, but it is yet to the pay the money. Is the deal still on?
There is no backtracking on the NMCE deal. The stake purchase agreement to buy 26 per cent in NMCE at Rs 65 a share was signed only after all the board members approved the deal. So it would not be true to say that the board was against it.
However, certain legal issues need to be clarified by the NMCE and we are working in close coordination. If everything goes well, the deal may be honoured within a couple of weeks.
What are the legal issues?
I would not want to publicly comment at this point of time. But some of the issues are trivial and pertain to technology sharing.
Is it true that BSEs technology contract with Swedish company OMX has been criticised as being overvalued?
The OMX deal is on track and there is no criticism from the board members. The technology will streamline and make the clearing and settlement systems more effective and derivatives trading more efficient. Moreover, BSE would be able to provide a whole lot of other services through a single terminal.
There have been a slew of resignations at BSE recently. Is there is a split in the board?
There is absolutely no split in the board. Discussions take place among the board members on a wide range of issues, but there is no confrontation.
The stockbroking community has opposed BSEs move about imposing a fine following the massive rise in two penny stocks. Whats your stand?
Stockbrokers have made a representation in the case. Our disciplinary committee is reviewing it and we will take up the matter in the next board meeting. A sharp rise in these two penny stocks is a matter of concern. We will constitute some mechanism that can avoid such incidents.
Hasnt the BSE been indifferent towards the listing of currency futures?
There has been a delay, but we have written to the Sebi asking permission to list currency futures on the BSE. The response may come any time soon. We will have the best technology in place and are ready to take up this new challenge.
What are your other top priorities?
The topmost priority is to increase our market share and develop derivative trading. We will take some steps in this regard in the days to come. I cannot disclose our strategy now.
