- NSE overtook BSE to become India’s largest stock exchange in 1994
The Indian capital market around the early 1990s was akin to the stone age,” says Ramachandran H. Patil, who founded the National Stock Exchange (NSE) at a time when the Bombay Stock Exchange (BSE) was controlled by powerful brokers and the Rs 3,500-crore Harshad Mehta scam had shaken the stock market.
Born in 1937 at Nandgad in Karnataka, Patil obtained a doctorate from the Bombay School of Economics and joined the Reserve Bank of India, moving on later to the Industrial Development Bank of India (IDBI). When he was an executive director at IDBI, his chairman S.S. Nadkarni asked him to build a stock exchange run by public institutions. A firm believer in automation and paperless trading, he linked trading terminals across India using V-SAT technology and introduced the electronic order-matching system. While the business model was based on electronic platform trading, the governance model was based on separation of trading,...