NSE facing 'difficult times', says chairman Ashok Chawla

Ashok Chawla | The non-executive chairman of Yes Bank stepped down on November 14 amidst reports that he felt the private bank needed someone who could devote more time and attention while CEO Rana Kapoor is on his way out. Chawla, who is also the chairperson of the National Stock Exchange and a board member of Jet Airways, was at the helm of the fourth largest private sector bank in India since 2016. Due to the multiple positions he holds, Chawla previously faced questions over possible conflict of interests. In July, CBI named him in a charge sheet in the Aircel-Maxis corruption case.

NSE Chairman Ashok Chawla told employees that the exchange is passing through difficult times and resolved to deal with legacy technology issues and organisational stress, in an apparent reference to exit of senior executives amid probe into the co-location matter.

In his letter, which comes a day after a technical glitch forced the bourse to halt trading for over three hours, Chawla said yesterday's situation was handled effectively which is indeed the NSE's responsibility as the largest exchange.

"Yesterday's technical glitch is, proverbially speaking, one more straw on the camel's back. While such a situation is a Black Swan event, it unfortunately puts the NSE in the spotlight for the wrong reasons," the letter said.

Noting that fiscal 2016-17 was a year of "many highs and lows", Chawla said the exchange did well financially and maintained robust market presence.

"At the same time, it has been a period of challenges - challenges on the organisational front, stress over the legacy technology issues, re-energising of relations with stakeholders across the spectrum from the regulator to shareholders," he said.

Last month, vice chairman Ravi Narain had put in his papers amid regulators intensifying their probe into alleged lapses in high-frequency trading offered through the exchange's 'co-location' facility.

The role of some top officials including Narain, who had also served as CEO of the bourse, is being looked into by markets regulator Sebi.

In December last year, Chitra Ramkrishna had quit as Managing Director and CEO of the exchange.

"Today I am writing to convey that we are no doubt passing through difficult times but that we shall overcome," Chawla said.

The capability and professionalism of the NSE's human capital is well known, he said, adding that he has been fortunate to have seen it from close quarters.

"... in this time of organisational stress, let us resolve to treat the challenge as opportunity. Let us work as a family to once again show that it is not for nothing that the NSE has become a world-class institution in a short span of 25 years," the chairman said.