Business Today

Gamblers Anonymous

     Print Edition: Jan 8, 2012

You are out vegetable shopping. You want a kilo of onions. There is only one vendor and he refuses to give you an accurate price. You still give him some money. He tells you he will be deliver only the following week. When it happens, you discover he has mixed some potatoes with the onions. This is not an exact version of how India's stockmarkets functioned until 1992, but the inaccuracy is only in degree. From a transparency point of view, there are few parallels to the National Stock Exchange, or NSE, in India.

An institution that can rightfully claim it changed equity trading in India through clear rules backed with technology and risk-avoiding margins. "One of the most critical changes was that a robust risk management system was set in place," says Ravi Narain, NSE's Managing Director and CEO. NSE has spread into even tiny towns ushering in a true equity culture and its daily turnover today is in excess of Rs 10,000 crore.

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