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.

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