CEO quits as crisis deepens at BSE | business | Hindustan Times
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CEO quits as crisis deepens at BSE

business Updated: Aug 08, 2008 22:24 IST
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The ongoing crisis at the Bombay Stock Exchange (BSE) further deepened with the bourse’s managing director and chief executive officer Rajnikant Patel tendering his resignation on late Thursday evening.

The alleged simmering of differences between the management and the board of directors had resulted in the “unceremonious exit” of Patel.

Patel’s exit comes in the wake of resignations of Shekar Datta as chairman and Jamshyd Godrej as director in June. Though Patel has said resignation is due to “personal reasons”, the buzz is that the technology deal that BSE entered into with OMX Nordic Exchange in January has created a tiff between the management and some directors. BSE’s decision, to pick up stakes in the National Multi Commodity Exchange (NMCE) and Calcutta Stock Exchange, has also been opposed by some board members, sources said.

“It is bad news for the exchange and public image of the exchange is getting hurt,” said a person who is associated with the exchange.

The Nordic Exchange was to takeover the BOLT system run by CMC Ltd to make it faster to meet requirements of volume growth.

“Brokers are least concerned about the politics in the exchange,” said Ramesh Patel, JNP Shares and Stocks, one of the old proprietary firms that transformed into a corporate entity following the demutalisation last year. Rajnikanat Patel was at the forefront of the demutalisation exercise, bringing in Deutsche Bourse and Singapore Stock Exchange as strategic partners. They own 5 per cent stake each in the exchange.