DNA Money Edit: India Inc needs a lesson in high profile exits

November is turning out to be the season of resignations for high-profile executives and heads of companies, bringing to the fore the issue of disclosures and how India Inc handles sudden exists of key management personnel. The sudden exit of Ashok Chawla, chairman of YES Bank, on Wednesday, saw the shares of the private lender plunge over 7% a day later. The statement following Chawla's resignation that only said the bank needed a chairperson who could devote more time during the planned management transition failed to soothe investors' nerves. The speculation that he might have resigned after being named in a charge-sheet by CBI has left investors confused.

The most recent high profile exit, that of Flipkart co-founder Binny Bansal for reason as vague as "serious personal misconduct'', left enough room for speculation. Similarly, the resignation of former Securities and Exchange Board of India chairman G N Bajpai from the directorship of the now infamous IL&FS Group also raised several unanswered questions.

The move by Vinod Dasari, MD of Ashok Leyland, to call it quits after 14 years at India's third-largest commercial vehicle maker surprised the market as well. Though he clarified that the decision was not a knee-jerk reaction but a planned move, the confusion was unavoidable.

India Inc may need a few lessons to handle such high profile exits without letting any significant damage to the image and stock prices of companies.