‘Not interested’ in second time period as NSE MD & CEO: Limaye

Days after the National Stock Exchange (NSE) invited functions for the function of its MD & CEO, its present MD, Vikram Limaye has communicated to the board that he wouldn’t prefer to be thought of for the second time period. Speaking to The Indian Express, Limaye stated he had discussions with the board and has communicated his choice.

“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 tenure ends on July 16, 2022. I have done my best to lead the organization in a very difficult period and to stabilise, 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 stated.

As per Sebi norm, the MD and CEO of a inventory change has to use and compete with different candidates for the highest job after the completion of the 5 yr time period. Limaye was appointed the NSE chief in July 2017 following the exit of Chitra Ramkrishna amid the probe into co-location rip-off.

While Limaye’s choice comes days after NSE invited functions, it additionally comes almost 4 weeks after the Securities and Exchange Board of India issued an order penalising it’s two former CEOs, Ravi Narain and Chitra Ramkrishna, final month, for alleged lapses in company governance through the appointment of its group working officer Anand Subramanian. In 2019, NSE was additionally penalised for giving preferential entry to a couple inventory dealer between 2012-2014 via their co-location facility.

Subramanian and Ramkrishna are presently in CBI custody, following the Sebi order that stated Ramkrishna was steered by a yogi, dwelling within the Himalayan ranges, in appointing Subramanian.

During Limaye’s time period, Sebi continued with the probe within the co-location rip-off that transpired in Ramkrishna’s time period and handed the orders in 2019. Insiders say that whereas Limaye’s time period concerned steering the change via the disaster scenario when the change was being probed for offering favours to sure brokers between 2012-2014, they really feel that he introduced development and stability again. The disaster, nevertheless, unfolded once more after Sebi got here out with its order on February 11, 2022.

“If the colocation matter was an institutional crisis and Limaye handled the situation and steered the company through it, the current crisis involving Ramkrishna and the alleged Yogi is not an institutional matter and will not have a bearing on the institution. It is more personal in nature,” stated a supply. During his five-year time period, whereas NSE’s income jumped over 3 times from Rs 2,681 crore in FY17 to round Rs 8,500 crore (anticipated in FY22); its revenue after tax is anticipated to cross Rs 4,400 crore in FY22, greater than 3.5 instances over its PAT of Rs 1,219 crore in FY17.

During the final 5 years, the NSE elevated its market share regardless of the controversies round colocation. While its market share within the capital market section has risen from 85 per cent in FY17 to 92 per cent in FY22; even within the forex choice section its market cap has gone up from 63 per cent to 75 per cent in the identical interval. Sources additionally state that NSE has considerably enhanced its regulatory surveillance mechanism, governance and management and has additionally undergone expertise transformation.