BSEs new process-driven boss may just be what the bourse needs – Moneycontrol

A process person and not a peoples manthis is what people who have worked and interacted with the new chief of Bombay Stock Exchange (BSE) Sundararaman Ramamurthy over the years have to say about him.

The new managing director and chief executive officer of BSE is an old hand at capital markets and a wiz in the often vexing segment of derivatives.

On November 28, the stock exchange said in a filing that the Securities and Exchange Board of India (SEBI) had approved the appointment of Ramamurthy as the MD and CEO. His appointment now has to be cleared by the shareholders of the exchange.

Nearly 19 years at rival the National Stock Exchange (NSE) in various capacities makes him the perfect choice for the job, according to one of his former colleagues.

The tech driver

The 62-year-old Ramamurthy was one of the key hands to shape the stock exchanges equity derivatives segment into the powerhouse it is today, with nearly 90 percent of the market share. NSEs enviable technological transformation and efficiency in clearing and settlement are attributed to Ramamurthys efforts.

At NSE, Ramamurthy handled an array of projects and also spearheaded the National Securities Clearing Corporation, the exchanges clearing house. His expertise in the area of capital markets is unparalleled and his track record at NSE would now be put to test at the rival exchange.

He was seen as the next in line for the top job at NSE but then he moved out, said a former colleague.

Ramamurthy quit NSE in late 2014 to join Bank of America (BofA), where he is the chief operating officer. His time at IDBI Bank in the early stage of this career helped Ramamurthy ease into his role at the multinational bank. He is credited with reducing impaired assets at the bank to almost nil, boosting the banks revenue during his stint.

But, not every feedback is positive. Described at times as unbending and inaccessible, Ramamurthy is recalled to be at loggerheads with many in the office. His approach to conflicts, at times, seemed somewhat petty to colleagues.

That said, there is little doubt that he was a stickler for rules and governance, which helped him immensely at his job. He is by the book and a stronghold in corporate governance but many times, things have become toxic too, says a colleague at BofA.

The upshot is that Ramamurthy has all the professional credentials to lead BSE into a growth path, especially since the stock exchange has become a publicly listed company and is accountable.

BSEs top job has been vacant for more than four months now after former chief Ashish Chauhan resigned to join NSE in July.

Chauhans move to NSE was in the aftermath of an ugly scam involving top executives Chitra Ramakrishnan and Ravi Narain, which resulted in a criminal inquiry against them. Ramakrishnan resigned from NSE in 2016 but it wasnt until 2022 that her wrongdoings came to light during a forensic audit. Ramamurthy has closely worked with both Narain and Ramakrishnan.

Notwithstanding the co-location scam at NSE perpetrated by top bosses, the stock exchange has risen to dizzy heights in terms of market share, technological superiority and clout.

The right man for a reboot

BSE, on the other hand, has been struggling to revive its derivatives segment with little success. Now more than before, it needs to fix its various issues in this segment and lure brokers.

Low volume in derivatives has meant that most brokers have stayed with NSE, leaving BSEs operations bereft of depth with high costs. With Ramamurthys experience and domain expertise, the fortunes of BSE could finally change.

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BSEs new process-driven boss may just be what the bourse needs - Moneycontrol