Corporate Governance loop holes in NSE’s management
The National Stock Exchange (NSE) episode is a classic example of absolutely opaque, discretion-based decision making, beyond the realm of law and governance. Since the revelation of communication between former MD & CEO of NSE and suspected “Unknow person” also known as spiritual baba, foundation of leadership, management style and governance standards of NSE are under scrutiny from various agencies of the Government. Government is taking pro-active actions to find out unidentified actors involved in the matter. This also highlights the importance of periodic review & scrutiny of role of leadership positions of strategically important government organizations given the vested interest of large number of stakeholders.
SEBI's examination found that the said unknown person had significantly influenced the decision making of former MD & CEO as reflected in the emails exchanged between Notice No. 1 and the unknown person, as perused by SEBI. It also found that NSE and its board were aware of such grave irregularities and misconduct on the part of former MD & CEO in the appointment of senior executive in the NSE. The matter is seeing continuous developments as new information is emerging with probe by government agencies.
