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The Rediff Business Interview/Anand Rathi

'I shall seek more powers for the BSE to expose 'vanishing' companies'

Just how deeply the J C Parekh-SEBI row has shaken the country's premier bourse -- the Bombay Stock Exchange -- was apparent minutes after the election of Anand Rathi as the new president today. "My top priority would be to improve relations with the Securities and Exchange Board of India and the image of the BSE," he said.

In a year's time, Rathi told Syed Firdaus Ashraf, the 124-year-old "institution" will regain the past glory. Excerpts from an interview.

What will by your top priority as the BSE president?

My first priority will be to improve the relations with the SEBI. It is in the interest of everybody to see that the relations between the market regulator and the country's oldest stock exchange are good.

The image of the BSE seems to have taken a heavy beating after the SEBI asked your predecessor, J C Parekh, to step down.

My endeavour would be to improve the image of the BSE. Media relations have to be improved. Interaction with the media has to increase and positive publicity is necessary.

Do you really believe that media management will boost the investors' confidence that seems to have been shaken after the J C Parekh case?

As far as Parekh's case is concerned, it is sub-judice and I would not like to comment on it. If there is a misunderstanding between the SEBI and the BSE, I think it can be cleared through discussions.

But people are expressing opinions on the propriety of Parekh's actions.

No, again. I must mention that the case is sub-judice and I won't comment. The problem with media-persons is that sometimes they listen to one thing and publish something else, and then a problem begins. So, it's better that I keep quiet on this issue.

What about the so-called vanishing companies? They have reportedly disappeared from public gaze after raising huge capital from the primary market.

The only thing the BSE can do is to delist these companies or inform the Company Law Board. I'm going to write to the SEBI and the finance ministry to give more powers to the BSE so that we can keep a check on these companies and expose them. This move, I believe, will work in the interest of the market.

There is a view that the National Stock Exchange is always one step ahead of the BSE when it comes to keeping pace with changing times.

All the elected members of the BSE will meet and discuss these issues. And if you recall, I was the person who played an important role in the introduction of the Bombay online trading system. I am sure things will improve by next year.

Any plans to make the BSE a high-tech stock exchange?

Yes, there are a lot of plans that will be executed at the right time. We have to improve the volumes and project a good image overseas. I shall try to bring back the past glory to the BSE.

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