The Hindu Business Line : Rajnikant Patel quits BSE

Mumbai, Aug. 8 The Managing Director & CEO of Bombay Stock Exchange, Mr Rajnikant Patel, resigned from his post late on Thursday evening, allegedly over mounting differences of opinion among the board members over the exchange’s investment-related decisions.

Like the other board members, who recently resigned, Mr Patel cited personal reasons for his resignation.

Two months ago, Mr Shekhar Dutta, BSE Director and Chairman, and Mr Jamshyd Godrej, BSE Director, had resigned from the board. BSE’s Chief Operating Officer, Mr Ashok Kumar Rout, also resigned recently.

Sources said Mr Patel was under pressure to resign.

An especially contentious issue at BSE was the board decision to invest approximately Rs 100 crore in National Multi-Commodity Exchange for 26 per cent stake in that exchange.

The agreement for this was signed two years ago; but, the BSE had not advanced any payments to get the deal going, as internally it was still an unresolved matter.

“Mr Rajnikant Patel has tendered his resignation as Managing Director & CEO of Bombay Stock Exchange Ltd for personal reasons and the same has been accepted,” said a BSE media release on Friday. Mr Mahesh L. Soneji, Chief Operating Officer, will be looking after the interests of the exchange till a new appointment is made to fill up the vacancy on account of Mr Patel’s resignation, said the release.

Personal reasons

Mr Patel was also on the board of Calcutta Stock Exchange (CSE) in which the BSE holds a five per cent stake.

“Mr Patel resigned citing personal reasons. We are looking for a suitable person for the position; till then Mr Soneji will take charge. Mr Patel’s resignation will in no way affect the working of the exchange or its future plans,” said BSE’s newly appointed Chairman Mr Jagdish Capoor.

Mr Patel’s tenure as CEO of BSE was to last till September 2009; he has served the BSE in various capacities for a period of over 7 years. In September 2004, he was appointed as Executive Director & Chief Executive Officer of the BSE for a period of 5 years.

Before this appointment, Mr Patel was the Chief Operating Officer and member of the governing board of BSE.

Mr Rajnikant Patel, joined the BSE as Director - Surveillance & Inspection in March 2001, and was elevated to the position of COO in May 2003 with additional responsibility as the CFO.

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