Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the BSE, said he never aspired to be a CEO, only circumstances made him one. He would probably be seen more as an entrepreneur after starting and exiting two of his own ventures. “Anyone who is able to find a solution to a problem is an entrepreneur,” Chauhan said. Perhaps it is this entrepreneurial spirit that drives him to lead the Asia’s largest stock exchange to new areas. In an interview with BusinessLine , Chauhan outlined his vision and views on key market trends. Excerpts.

SEBI nowadays is coming out with very detailed circulars that seem like micro-managing the affairs of the stock exchanges. What is your view?

Either we do our job seriously or the regulator will come and tell us how to do our job. That is how I see it. If the exchange infrastructure is getting choked as it is getting more and more orders, it can be solved in two ways — either by improving its infrastructure or by the regulator. Exchanges can also say – I will go to the regulator, I don’t want to invest, I don’t want to improve, I don’t have the ability probably, but you should also not go to my competitor. That will be like saying my highways are full and your highway might be empty but I do not want people to come to you; I want the regulator to come out with regulations. Basically, if we are not doing our job today and doing what is technologically possible, the regulator has the right to tell us what to do.

What is the BSE doing to make life easier for investors?

I think there are many trends, a lot of them are playing out at the same time. One is the issue of technology, second is the speed. Today, the BSE has become the fastest exchange in the world. If you place an order on the BSE you will get a confirmation in six micro seconds (1 second = 10 lakh microseconds) and the nearest fastest exchange is at 60 micro seconds. We are like 10 times faster than the nearest fastest exchange anywhere in the world. We now have a target of 600 nanoseconds in the next three years (one second = 100 crore nano seconds).

You have a robust clearing system. Are you looking at doing clearing and settlement for other exchanges?

Internationally, clearing corporations are becoming numerous after the financial crisis. One of the biggest recommendations in the US is to report all trades to clearing houses or repositories and clear them through centralised places. Today, a person sitting in Kanyakumari is able to invest in a company in Arunachal Pradesh — he probably will never go to Arunachal Pradesh, but he knows that the system will ensure some basic hygiene into the behaviour of the company and so if I don’t have that trust, that entire edifice of the capital market collapses.

BSE had launched a platform for listing start-ups. How is that doing?

As and when any company comes we will list it. It took me around six months for the first company to come on SME market platform, second company also took another six months and now we get practically three to four companies every week. So it’s a matter of time before people get used to it. Regulations also have to evolve.

When you talk to start-ups what are the reasons that do not want to list here?

The way I understand is that in India the valuation for those companies are not available. In the US, concept companies are valued pretty much differently. For example, Makemytrip got listed in the US and had a billion dollar valuation. If you have one or two success like what happened with the IT companies in India: when Infosys and Wipro listed they became a rage. So we need one or two successes first.

Retail investors are not allowed to invest in start-ups. Could that be one of the reasons?

For me they are more interested in raising funds and the valuation they get. Some of them can also look at giving exit route to their current private equity owners. I don’t think they are not too hung up on any particular type of investor. SEBI has said very clearly after few years they can go to the main board also. In the SME platform, seven companies have gone to the main board already.

What is the status of Zone Startups?

Zone Startups is on the 18th floor of the BSE building. It’s a tie up between Ryerson University in Canada and the BSE. In the last one-and-a-half years, it has funded about 60 companies for between ₹20 lakh and ₹2 crore. It's one of the most successful incubators in India. BSE is like a catalyst; we give physical space and provide the entrepreneurs with mentors. Several PE funds have invested in these start ups and we're now planning on giving the initiative more space. You can see the new India being created there.

You had said that six years ago, you realised you had made enough money. What keeps you ticking now?

As long as you're adding value to society, you can continue doing what you do.

What would your advice be to small investors?

Never trust in tips.

What does it take to be a CEO?

I never aspired to be a CEO. I would rather not be one. But I will continue till the time I can add value. I was happy-go-lucky. Both my parents were government servants and if I had a government job, it would have been alright. I was a good student but I didn’t study hard. (Being a CEO now) is more because of things happening by circumstances and not because of me wishing for it.

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