To Limaye’s credit, however, the exchange has been able to strengthen its governance level under his leadership. 
To Limaye’s credit, however, the exchange has been able to strengthen its governance level under his leadership. Vikram Limaye, MD & CEO of the National Stock Exchange (NSE) has said that he is not interested in a second term at the helm of the exchange, whose image has been marred by a series of controversies in the recent past.
Limaye, who assumed office in 2017, said in a statement that he has informed the board of the exchange of his decision of not wanting to pursue a second term.
“I have informed the board that I am not interested in pursuing a second term and will therefore not be applying and participating in the process that is underway. My tenor ends on July 16, 2022,” Limaye said.
“I have done my best to lead the organization in a very difficult period and to stabilize, strengthen and transform NSE. We have come a long way in terms of controls, governance, technology, regulatory effectiveness and business growth. I am grateful to all stakeholders, regulators and government for the support extended to me,” he added.
This assumes significance as NSE, which is the country’s largest stock exchange and also the world’s largest in terms of derivative turnover, is probably going through its most difficult phase with investigative and regulatory bodies probing alleged wrongdoings at the bourse.
Last month, the Securities and Exchange Board of India (Sebi) issued a 190-pages order against the NSE, penalising the exchange and its former honchos Ravi Narain and Chitra Ramkrisha along with former Group Operating Officer Anand Subramanian.
Both Chitra and Anand are currently in CBI custody for their alleged role in the colocation scam. The capital markets regulator has also barred the exchange from launching any new products for a period of six months.
Meanwhile, NSE has already hired a global organisational consultancy firm - Korn Ferry – to help it get a new chief.
Interestingly, one of the requirements is that the candidate should have a “track record of strengthening Corporate Governance, Enterprise Risk Management and compliance management framework”.
It also stated that experience in working with a listed company or having taken an organisation through the IPO route would be an added advantage.
While NSE has been trying for long to go public, regulatory probes related to the colocation scam has put a spanner in its plans.
To Limaye’s credit, however, the exchange has been able to strengthen its governance level under his leadership. All the current controversies and probes related to NSE emanate from a period before Limaye came on board in 2017.
Limaye’s predecessors Chitra and Ravi Narain are both currently subject of probes by investigative agencies.
Even in terms of profitability, the exchange has registered a strong growth under Limaye. The net profit of the exchange in the current financial year is estimated to be pegged around Rs 4,400 crore – a huge jump from Rs 1,219 crore in FY17. In terms of revenue as well, the period has seen a jump from Rs 2,681 crore to Rs 8,500 crore.
The bourse has also managed to increase its market share under Limaye while continuing its monopoly in the derivatives segment. In the cash market, NSE’s share was pegged at 85 per cent when Limaye assumed office – this has risen to 92 per cent.
Even in the currency derivatives arena, the exchange’s share has risen to around 75 per cent.
Also read: NSE co-location case: Court sends Chitra Ramkrishna to 7-day CBI remand
Also read: NSE starts hunt for a new chief
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