Exclusive Story- Ashishkumar Chauhan : The Game-changer!
Ashishkumar Chauhan, MD & CEO of BSE, is a man with two different facets to his personality. When it comes to his professional life, he is hardworking, innovative, challenge-driven, tech-savvy, gritty, single-minded, fearless risk-taker who has a never-say-die attitude. He is not daunted by any adversity as he smells an opportunity to deliver out-of-the-box solution that has at times even changed the rules of the game. He is a team player who encourages his team members to take up responsibility with accountability to deliver results against all odds.
Early days
Ashish’s childhood days were like the days of any other boy hailing from a middle-class family. Both his father and mother were educated and employed, so although education was a given requirement, there was no pressure on him to perform in his academics.
But his education in Gujarati medium throughout his schooling days would pose a major challenge when he got admitted to the Indian Institute of Technology in Mumbai. Reminiscing about those difficult days, Ashish says: “The biggest hurdle I faced at IIT was of language. Though there were quite a few students from vernacular medium schools, they had been taught in English in their 11th and 12th standards. For me, it had been Gujarati throughout. English perplexed me. It used to take me 3 to 4 hours to understand one page! I had to keep referring to my dictionary for almost every word...Lectures were difficult to comprehend. During viva, I remained tongue tied, I knew the answer, but speaking the language and its grammar, that too with my vernacular accent, was a major limitation. I used to feel ashamed because even peons there spoke in English.” But Ashish was not one to give up so easily and run away from the challenge. He took up English speaking classes, with emphasis on pronunciations, to overcome his vernacular intonation.
Reminiscing about his days at the IIT, Ashish says: “The years at IIT were the toughest part of my life. I was facing many hurdles mentally and physically. However, these tough times instilled a confidence in me that I could handle any situation. A selfless attitude used to drive me subconsciously which made it enjoyable. I never looked at the gain or loss, and had no attachment to material aspects or ego satisfaction. During those years, I learnt about interpersonal behaviour patterns from friends of different calibre. Some of them were extremely disparaging and some were extremely helpful. The most wonderful moments of my life, some very enduring friendships and precious memories are the treasure of the four years at IIT, Bombay.”
Getting the ‘thick’ through ‘thin’
Ashish has some pioneering and path-breaking achievements to his credit in his professional life.
When he was working on the LAN network for the National Stock Exchange (NSE), Ashishwent against the prevailing system of installing thin wire having lot of thin strands bound by an outer cover and instead ordered thick wire having a single cable with a plastic coating. The seniors at NSE felt that Ashish had committed a major blunder in ordering the thick wire and that the system would fail. But when the system was installed, it worked just as fine! This was a major triumph for Ashish as his youthful exuberance to experiment with a new product had won the day against the baggage of experience that sought to resist change.
Pioneering a revolutionary change
At the NSE,the introduction of screen-based trading required superfast data connectivity and reliability, whereas in those days the data connectivity across computers was very slow and unreliable. To overcome this problem, Ashish put forth a revolutionary proposal of using satellite connectivity for two-way data transmission. Elaborating on his proposal of satellite communication (SATCOM) for data connectivity, Ashish says: “My concept was that satellite communication network for NSE would bring India onto a single platform. A single nationwide order book was unheard of, we were poised to venture into something no one had even dreamt of. Most importantly, everyone in India would get the same response time of less than two seconds. Most of the people involved believed it to be a pipe dream and that the entire project would fail.”
But braving all odds, the SATCOM project was implemented and the NSE’s equities market was up and running. NSE, the country’s first automated exchange, went live for ‘muhurat’ trading in the evening on 3 November, 1994. The success of NSE proved to be a trailblazer not just for the rival BSE, but also for NYSE, NASDAQ, London Stock Exchange and other major exchanges across the world, who followed suit. Ashish’s path-breaking initiative to introduce satellite-based two-way telecommunication was the driving force behind the success of the National Stock Exchange’s revolutionary automated screen-based trading that changed the way the stock markets functioned and conducted their businesses in the country and across the world.
NSE’s success was vindicated by the galloping figures of daily turnover. Within eleven months, NSE’s daily turnover equaled that of its rival BSE and within one year, NSE had surpassed the turnover of the BSE. After 18 months, NSE’s daily turnover surged one-and-half times that of the then 120-year-old BSE. An extraordinary achievement by any standard!
Becoming the Father of Indian financial derivatives
In late 1995, ‘derivatives’ had become the buzzword in the financial markets. Ashish was given the responsibility for the formulation and execution of derivatives. Software vendors had convinced the seniors at NSE to buy extremely expensive software from a new European exchange. The cost would have been in the range of USD 100 million. But the problem was that all softwares from Europe were working on different communications protocols and screens, while Indian traders had got used to NSE NEAT interface. Ashish was told that the experts were of the opinion that NSE’s current software would not work. Also, several foreign experts were making presentations to NSE to convince the suitability of their software for derivatives. However, Ashish convinced the NSE board and seniors to let him try to modify the existing NEAT software and also prepare back office, clearing and settlement, risk management and other software along with regulations for the derivatives segment. Ashish was permitted to do the modification and the rest, as they say, is history. Ashish and his team successfully carried out the modification and got NSE’s derivatives segment up and running. This was yet another feather in the cap of Ashish, who deservedly earned the moniker ‘Father of Indian Financial Derivatives Market’.
Putting Reliance Telecomback on track
In 2001, Reliance launched mobile telephony at 20 paise per minute, while the existing players charged ₹ 16 per minute. Reliance offered mobile connections to subscribers at ₹ 501 and at monthly payment of ₹ 500 thereafter. While the rock-bottom pricing created a huge upsurge of subscribers for Reliance, the billing systems failed to keep track of the subscribers due to which bills remained unpaid and losses mounted up. Reliance chief Mukesh Ambani appointed Ashish as the Chief Information Officer and directed him to clean up the billing mess.
Ashish and his team implemented streamlining exercise by tweaking the existing software. Due to this, Reliance did not have to spend any money on buying new software. Within six months the billing issue was resolved and this achievement made Ashish a hero of IT.
Putting the BSE house in order
When Ashish took charge as the Deputy CEO of BSE in 2009, BSE was reeling undervarious issues and was facing a crisis situation.Recounting what BSE was like in those days, Ashish says: “When I stepped in as a Deputy CEO, BSE was in crisis. It was facing many accusations and allegations. It had not kept pace with changing times, neither in technology nor in attitude. That is the reason their loss was NSE’s gain. They had no new products to offer like derivatives, had lost reputation and had constant troubles with trade unions. Their regulatory systems were flawed and frail, and the quality of human resources was not upgraded. It was indeed the most precarious time for me to function as a deputy CEO. I was set to play a vital role in changing the destiny of a gigantic organisation, which was at its nadir, waiting to be awakened.”
Ashishrealised that there were five major issues to be tackled, namely, technology, people, products, distribution and reputation. Ashish and his team began from the grassroots level and the first step was to change technology completely. Slowly, over a period of three years, the pulse of the BSE was revitalized without major disruptions. Speaking about the change, Ashishsays: “Metaphorically, we had opened the closed doors and windows of BSE, and showed them the fast changing world outside their institution. We urged them to evolve and anticipate, and made them realize that they had ignored automation and upgrade for 15 years!”
When Ashish took over as the MD & CEO of BSE in 2012, his first task was to boost the morale of the employees by creating trust and giving them authority with responsibility. Speaking about the change in work culture, Ashish says: “I gradually introduced the new way of working. I gained the trust of the employees because I worked without imposition or coercion. As we evolved with technology upgradation, the entire environment changed, operating speed increased, their spirits got a boost, and we all cooperatively started setting and achieving new goals with renewed vigour. All of us were determined that BSE had to be prepared to usher in tomorrow…today!”By November 2014, the market capitalization of BSE listed companies had crossed ₹ 100 trillion and by Oct. 2015, BSE triumphed by gaining the reputation of being the fastest exchange in the world, with a response time of 6 microseconds!
Innovating to lead from the front
In March 2012, BSE became the first exchange in the country to launch a dedicated SME platform for listing of small and medium enterprises (SMEs). The BSE SME segment is the market leader of its kind in India, with about listed 370 SMEs, 136 of which have grown and successfully migrated to the main board of the exchange. In April 2014, BSE SME exceeded $ 1 billion market capitalisation.
In March 2014, BSE launched the BSE STAR-MF platform, which is India’s largest digital platform to distribute mutual funds and currently commands close to 82% of market share amongst similar platforms in mutual fund industry. The robustness and seamlessness of BSE STAR MF’s operations, along with swiftness of distributors’ query resolution through real-time interaction, has created an ideal ecosystem for all stakeholders in the Indian mutual fund industry. About 52% of new investors coming to MF industry are routed through BSE STAR MF.
In 2017, BSE set up the ‘India International Exchange Limited’ or India INX, India’s first international exchange, a whollyowned subsidiary of BSE Ltd, in the Gujarat International Finance-Tec City. The exchange commenced its operations from Jan. 16, 2017. The average daily turnover for the month of September 2021 was USD 5.3 billion, with an 84% market share among the exchanges at IFSC. Operating on an advanced technology platform EUREX T7, India INX is the fastest exchange in the world with a turnaround time of 4 microseconds. India INX offers a first of its kind single segment approach for all asset classes – equities, currencies, commodities and fixed income securities, providing significant cost advantages to its participants.
Between 2012 and 2017, BSE launched trading in BRICSMART indices derivatives, which was followed by launch of currency derivatives, interest rate futures, etc. The launch of these financial derivatives saw BSE becoming the ‘Best Managed Financial Derivatives Exchange’ in India. On October 1, 2018, BSE launched commodity derivatives trading in gold, silver, copper, Oman crude oil, guar gum and seeds and turmeric.
Getting BSE listed
BSE was not permitted to have an IPO, as it was ordained that stock exchanges cannot be listed. BSE decided to take up the issue and began persistent effortsto persuade the authorities to grant permission for the IPO. BSE’s consistent follow-up, backed by performance-driven results, created that ‘magic’ moment – BSE received the final nod for its IPO! BSE announced its IPOin Jan. 2017, andwith over a million applications, the IPO was oversubscribed 51 times. “The people’s overwhelming mandate was a stamp of ‘trust and faith’ in BSE as an institution. What was lost over decades, was regained in one stroke,” opines Ashish. The BSE stock price has appreciated from the issue price of ₹ 806 to ₹ 935 on April 1, 2022 providing decent returns to the investors.
Protecting market integrity
In order to protect the interests of the investors, BSE ensured highest standards of regulatory compliance. This is what Ashish insisted on honouring, urging his team to follow strict guidelines. BSE’s systems and processes were designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments. No wonder, with Ashish at the helm, there has been no breach of market regulations or no financial scams to tarnish the image of BSE.
Ashish’s personal integrity and selflessness had a major role to play in ensuring that BSE’s operations remained above board and that there was no breach of rules and regulations from within the institution. This is a major achievement for BSE, considering that its rival NSE has been embroiled in a major controversy recently which has tarnished its image.
The change agent
Ashish has presided over the metamorphosis of the 147-yearold computerisation-allergic and change-resistant exchange into the ever-evolving, innovative and hi-tech exchange that today boasts of being the fastest stock exchange in the world. In a way, apart from technology acting as a catalyst of change at the BSE, Ashish has proved to be the change agent that helped the almost 150-year-old institution to become as agile and tech-savvy as a 10-year-old boy.
Ashish used technology as the ‘strategic’ tool to ensure that the exchange remained at the forefront by keeping pace with the changing environment. Apart from his own passion for technology, he also encouraged his team members to drive existing or new technologies in different areas to help speed up operations and give faster results.
In the ‘Author’s Note’ to ‘Sthitapragya’, the autobiographical book providing an account of Ashish’s personal and professional life, Mayoor Shah has aptly summed up the journey of Ashish’s life till date, thus: “He is a poster child of India’s progress and how life of every Indian citizen has changed over last 50+ years. He is unassuming, unattached, humble, confident and wise beyond words and years. Of course he has got many more decades left to serve the country…I am sure he will continue to chug along in his own measured, peaceful, wise and unattached ways as he has done all these years and keep making India proud.”
Ashish’s professional life presents a fascinating journey of discipline, hard work, positive attitude, fearlessness and balanced mind. He performs his duties without any self-interest which sets him apart. He moves with the times and has the vision to see what lies ahead in all his endeavours. No wonder, Ashish is set to take on bigger and challenging roles after his term at the BSE ends in October 2022, and as a leader who has proven his worth time and again, he is all set to play a pivotal role in promoting the growth of financial markets in India.