Knowledge Partners

 Economic Laws Practice       Avalon Consulting

 Technloogy Holdings   

March 20, 2013

The Chakra Vyuh of Private Equity

As part of his speech at the Venture Intelligence APEX'13 Awards, Ashish Chauhan, CEO, Bombay Stock Exchange, described how PE/VC investors were like the mythological character Abhimanyu  who knew "how to enter (the Chakra Vyuh), but not to exit".

He suggested that they could, at time of their investment into an SME company, insist the company list on the BSE's SME Stock Exchange. "Then, you can create an exit (route) at the time of the entry itself," Mr.Chauhan said. The added benefit is that the various governance related provisions that investors desire - from declaration of financial results, etc - is ensured by the exchange and enforced by SEBI and other regulatory agencies. "Protection of minority rights - i.e., ensuring corporate democracy - is the primary job of the exchange. If the majority owner takes away most of the profits and shares only the losses with the minority, then the faith in the public markets will collapse,”  Mr.Chauhan added.

For the more detailed APEX'13 Awards Highlights, Click Here

For the more detailed APEX'13 Summit Highlights, Click Here

Venture Intelligence is the leading provider of data and analysis on private equity, venture capital and M&A transactions in India as well as Financials & Valuations of Private Companies in the country. Click Here to view our products list including the Free Deal Digest Weekly: India's First & Most Exhaustive Transactions Newsletter.