The role of the executive director is supposed to be more than just an administrator of the exchange, and he is supposed to play a vital role in formulating policies, monitoring the functioning of the exchange and supervising surveillance. But the manner in which the BSE ED is accustomed to functioning is more like a rubber stamp, endorsing what is told to him by the governing board and the office of the president of the exchange. This must change, even though such a person will not endear himself to the presiding brokers of the BSE.

The exit of the current ED and the installation of a large number of professionals on thegoverning board, including the current president of the exchange, should be seized as a golden opportunity for change at the exchange. The professionalism with which the NSE is run and the sucesses notched up should indicate to the BSE how far behind they are from the country's premier exchange.

Coincidentally, there has once again been a recommendation that the scrips that are cumpolsorily being traded electronically also be traded in a rolling settlement format. Now, introduction of derivatives trading is a certainty since Sebi is known to be keen on a rolling settlement and without derivatives, liquidity will dry up. But the moot point is that derivatives trading will require a sophisticated system of monitoring which in turn will require a strong management, essentially an executive director that can function independently, on the lines of the NSE.