News Update

NSE’s goal during the first investor meeting is to regain their confidence

• ByStartupStory     |    November 10, 2022

After the country’s main exchange was rocked by corporate governance difficulties and frauds in recent years, the bourse conducted its maiden conference call with investors on Monday in Bangalore and Mumbai.

Ashish Chauhan, formerly the head of the Bombay Stock Exchange (BSE), took over as managing director of the privately owned National Stock Exchange (NSE) in August, and shortly afterwards, NSE had its first investor engagement in its almost three decade history.

Investors and analysts questioned the NSE’s management team of six top executives on everything from the co-location fraud to the timing for when the country’s biggest exchange would go public and provide an exit for some of its early investors.

This is our first quarterly call, but we want to make them a regular occurrence moving ahead. Your input is essential to our continued growth and development. For the sake of a more fruitful future partnership with all interested parties, I promise that all comments will be carefully considered “Mint listened to an audio recording of the conversation in which Chauhan made these remarks to the investors.

Regarding the co-location case, there are cases in various courts, so I won’t like to comment on that. Concerning corporate governance, that is something that happened in the past. Broadly speaking, most of that occurred before 2017, and since then there has been no such issue. However, there is an overhang of that, and we are all acutely aware of that “This is what Chauhan said.

Allegations in the co-location case center on NSE executives, who were allegedly complicit in the unfair advantage granted to some high-frequency traders by hosting their co-location servers on-site at the exchange.

The co-location frauds and the actions of ex-CEOs Ravi Narain and Chitra Ramkrishna are at the core of the corporate governance problems at NSE. The Securities and Exchange Board of India raised red flags about “bizarre behavior” earlier this year “of a former NSE official who allegedly exchanged sensitive information with a yogi in the Himalayas, as stated by the regulator in an order that was kept secret.

With this leadership transition at NSE, Madhabi Puri Buch became the first woman to head the markets regulator.

It has been reported by DAM Capital, a Mumbai-based investment firm, that NSE has informed investors that it plans to sell its people management and cloud computing divisions.

According to NSE

According to NSE’s 2022-23 annual report, CXIO Technologies Pvt. Ltd, a step-down company that owns in majority, handles the exchange’s cloud computing operations and had revenue of 59.36 crore in the year ending 31 March.

NSE’s TalentSpring Pvt. Ltd is an ed-tech company that provides instruction in deep technology and artificial intelligence. In 2017, TalentSpring reported revenue of 72.16 crore.

For the three months ending in September, NSE reported revenues of 3,157.5 crore, up 63.0% year-over-year and 12.3% quarter-over-quarter, and a profit of 1,773.9 crore, up 62.0% year-over-year and 5.0% quarter-over-quarter.

Given history, its current shareholder involvement is a promising development “According to a manager at a family office in Bengaluru that invests in the NSE, the exchange is doing well. This action is also a signal to the regulator that the exchange intends to begin public trading.”

Originally planning to list by the first half of 2017, NSE submitted its IPO application to Sebi in December 2016 but was unable to do so due to concerns surrounding the exchange’s co-location.

Chauhan stressed the importance of trust throughout the hour-long discussion, saying, “The stricter the laws, people’s faith in the market goes higher, and more people come into the markets.””

As of 30 September, the general public owned 55.67 percent of NSE, while trading members and their associates owned the remaining 44.37 percent. Just than a third of NSE is owned by non-Americans. Tiger Global and the Canada Pension Plan Investment Board are two of the exchange’s major shareholders.

Billionaires like N.R. Narayana Murthy (through Catamaran Ventures), Radhakishan Damani (1.58%), and Azim Premji (3%) all hold shares in NSE via their respective family offices. LIC is the biggest of the company’s 3,858 stockholders, with a 10.7 percent stake.

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