NSE’s outgoing managing director and CEO, Vikram Limaye, said on Saturday that he had done his best to lead the exchange through “very difficult times” and to stabilize and strengthen the exchange.
Limaye, whose five-year term ended on Saturday, has not sought another term on the National Stock Exchange (NSE) despite being eligible.
However, the stock exchange did not announce who would take over as head of ESN from Limaye.
According to a source, instead of an individual, a committee will take charge for an interim period. The exchange is expected to announce a decision in this regard on Monday.
The end of Limaye’s five-year tenure as head of the NSE comes amid the NSE facing regulatory investigation in a case involving breaches of stock exchange governance as well as the co-location case.
“I am completing my 5-year term as Managing Director and CEO of NSE today. I have done my best to lead the organization through a very difficult time and to stabilize, strengthen and transform NSE,” said Limaye.
The outgoing chief said: “We have come a long way in the last five years in terms of strengthening governance, controls, technology, regulatory efficiency, risk management, growth of the market and culture”.
On March 4, NSE invited applications from candidates for the position of MD and CEO. Applications were invited from applicants with IPO (IPO) experience for the senior position role by March 25.
Following this, Limaye announced that he would not seek a second term on the stock exchange when his five-year term ends in July.
Under market regulator Securities and Exchange Board of India’s rule, the incumbent must compete with other candidates to win the next term.
Limaye was appointed head of NSE in July 2017, following the departure of the exchange’s former managing director and CEO, Chitra Ramkrishna. Among various allegations, issues were raised in various circles as to why a candidacy was not invited when Ramkrishna was appointed as Managing Director and CEO in 2013.
Before joining the NSE, Limaye was CEO and CEO of IDFC. The outgoing leader, Limaye, is credited with rebranding the NSE, in addition to the derivatives business which has grown phenomenally under his leadership.
During Limaye’s tenure, the stock exchange’s income fell from Rs 2,681 crore in FY17 to Rs 8,500 crore in FY22 and net profit fell from Rs 1,219 crore to Rs 4,400 crore over the same period. Additionally, the company’s return on equity increased from 17% to 34% during the reporting period.
In addition, NSE managed to increase its market share in all business segments, including currency futures and options and equity futures and options.
While inviting applications from candidates for the top position at NSE, the exchange said the candidate should have experience in strengthening corporate governance, enterprise risk management and framework compliance management.
Additionally, candidates with exposure to working at a publicly traded company or having led an organization through an IPO process “will be an added advantage,” he added.
The NSE plans to exit with its initial stock sale for a long time. However, the plan to go public was derailed after the exchange became embroiled in a colocation controversy, where some brokers allegedly had unfair access to exchange data feeds compared to other members.
After this period, the company’s Appointments and Compensation Committee (CNR) was tasked with shortlisting the candidates.
A selection committee set up by the NSE, composed of members of the NRC and independent external members, will recommend candidates to the board, which will then send the name to Sebi for final approval.
In a recent order, Sebi penalized former NSE doctors and CEOs Ramkrishna and Ravi Narain and others for various violations in a case related to the appointment of Anand Subramanian as the group’s chief operating officer and adviser. of General Manager Ramkrishna.
The regulator in his order revealed that Ramkrishna was ruled by a “yogi” inhabiting the Himalayan ranges during the appointment of Subramanian.
In addition, she was accused of sharing confidential information including financial and trading plans of the stock exchange, dividend scenario and financial results with the yogi, and even consulting the yogi on the valuations of performance of stock exchange employees.
The “yogi”, according to Ramkrishna, was a “spiritual force which could manifest wherever it wanted and had no physical coordinates or location and largely dwelled in the Himalayan range”.
Furthermore, the emails exchanged between Yogi and Ramkrishna mentioned that NSE was planning self-registration, the command revealed.