'Future bleak', ASE MD KC Mishra puts in papers

Ahmedabad Stock Exchange (ASE) the second-oldest stock exchange of the country is a step closer to exit now. Shareholders, who are known as promoters or owners of ASE, asked KC Mishra, managing director of the exchange, to put in his papers. And, he resigned.

Mishra joined ASE as senior officer in April 1986. Now, after 27 years, he resigned form the post of managing director, when he found that the exchange had no future and it was on the verge of closing down or exit.

“On Saturday, the shareholders asked me to resign as they have decided to make an exit. For them, this is the only option left to get their money back. Shareholders have invested crores of rupees a decade back in the hope of getting good returns. Following the exit or closure, ASE’s property would be sold and shareholders would be given their money,” said Mishra.

PK Laheri, a director on the ASE board, confirmed having received an email from Mishra. “I have received an email from Mishra. The board is scheduled to meet on September 23 when the MD’s resignation would be discussed,” he said.

Kush Shah, shareholder and member of the ASE board, said: “We have received his resignation letter. Soon the board will meet and decide on it.”

When asked whether Mishra had been pressured by shareholders to resign, Shah said the MD resigned on his own. “I have no clue to whether he was pressured or not. But, making exit will be decided by Sebi (Securities Exchange Board of India). No one else can play a role in it,” he said.

Earlier, the board members tried to save the stock exchange by chalking out a revival plan which failed as it could not meet the eligibilities set by Sebi. ASE also tried to merge with Vadodara Stock Exchange and Saurashtra Kutch Stock Exchange. But that plan also failed.

“At present, at least five regional stock exchanges have sent in exit requests as shareholders of the respective regional exchanges wanted their money back,” said a former ASE board member.

The source also said that like other regional stock exchanges, ASE members were also eyeing an exit. “At present, there are around 30 employees who are likely to get an offer for VRS and by the end of 2013, there is a possibility that the exchange may not have a single employee,” said sources.