Damanis Shadow To Loom Large Over Bse

The electoral tussle within the Bombay Stock Exchange(BSE) governing board is hotting up. With the outgoing president M G Damanis term ending today (March 31), a new power structure is set to emerge within the exchange.

Three days after the Securities and Exchange Board of India (Sebi) shot down the proposal for an extention of M G Damanis term as president beyond two years, there is a view within the exchange that the exchange president may retain the remote control over operations at the exchange.

Sources say that BSE treasurer Rajendra Banthia is all set to become the exchange president. Jayesh Sheth and Ramesh M Damani are now emerging as front runners for the vice presidents post. Jasubhai C Parekh, the current Bombay Stock Exchange vice-president, may not find favour this time, and health grounds may also determine this decision. Kirit Bhagwandas, a BSE broker is now tipped to be the new treasurer.

 

The exchange has, however, clearly recognised the hardwork and selfless efforts put in by M G Damani over the past two years.

A special post will now be created for the outgoing president and he would be the chairman in charge of key operations like the Central Depository Services Ltd and the BOLT expansion.

The new structure may just help the system as Banthia has not only shared a good rapport with Damani over the years but has been identified as his right hand man.

The only blemish, which could affect him, is the controversy surrounding Sebis investigation into illegal badla trading, wherein links with Banthia have been suggested. The tables seem to have turned for the two former favourites for the Bombay Stock Exchange presidents post.

It must be noted that Deena Mehta and Anand Rathi were growing in stature as high profile personalities who could have headed the exchange.

They were amongst the four governing board members who came onto the board in the previous term.

They had been identified as part of Damanis select coterie, but were now seen as emerging independent from the group.

A board insider, on the condition of anonymity, said, Damani will order. No one in the board dare question his diktat.