MUMBAI: Vikram Limaye who took over as CEO of NSE in 2017 in the midst of the controversial colocation scam now has some clarity on the issue. Sebi on Tuesday by way of five orders settled issue and held NSE and its former CEOs in violation of Sebi norms. The exchange is staring at a penalty of ₹1000 crore and a six months ban from fund raising. Limaye spoke to Mint on these orders. Edited excerpts
What will be the impact on NSE?
I would like to clarify that the ban is only on fund raising so our public offer may be delayed by six months. However there are no implications on the functioning of NSE as a critical market infrastructure institute and it will continue to run smoothly for Thursday's trades. We continue to have trust of the investors. Sebi in the order has held their were due-dillifence lapses but did not find NSE guilty FUTP.
The amount ₹1000 crore seems like a huge sum how will this impact your books?
₹1000 crore is indeed a huge sum and it will impact anyone's books. We are examining the order and are exploring legal options. Having said that NSE as an exchange has a net worth of ₹7000 crore so the hit will be there but may not be that much if seen in that context.
Three of your key employees including Ravi Varanasi, Suprabhat Lala have been asked to not associate with markets for three years. This will make life difficult for NSE?
Like I said we are exploring all legal options that pertains to all employee related matters too. Our legal team and I suspect their lawyers would also be examining the orders for the way forward. We have been assisting the employees so far in filling all the replies to the regulator.
How would you pursue recovery of 25% of salaries from Ramakrishna and Narian?
I am sure their legal teams would be advising them on all recourses available as are we being advised.
Would you say that the long drawn matter which has been with you since you took over is finally over?
I would not say that. However I would say that we have some clarity on the issues as finally there is an order. The matter is not yet over as we are examining these orders and are being advised on the way forward.
