Fri. Sep 30th, 2022
NSE MD & CEO Vikram Limaye Not Willing To Continue the second term after July

Vikram Limaye Not Interested In 2nd Term:

NSE Managing Director and CEO Vikram Limaye on Wednesday said he is willing to continue to the second term at the stock exchange after his five-year term ends in July.

The announcement has come at a time when National Stock Exchange (NSE) is facing a regulatory probe in regards to misgovernance at the bourse as well as in the co-location matter.

“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,” Limaye said in a statement.

The NSE MD & CEO said, “I have done my best to lead the organization in a very difficult period and to stabilize, strengthen and transform the NSE. We have come a long way in terms of controls, governance, technology, regulatory effectiveness and business growth.”
The NSE lately asked for willing candidates to apply for the role of MD and CEO before March 25. The applicants must have an IPO (initial public offering) experience for the role of the top-level post.

Limaye is eligible for re-election, but the incumbent must compete with other candidates to win the next term, according to Sebi’s rules.
In July 2017, Limaye took over as CEO of the NSE from MD and CEO Chitra Ramkrishna, the former NSE MD & CEO embroiled in the “ Himalayan Yogi” scam.

According to the criteria set up for the appointment, the candidate must have a track record of building up corporate governance, enterprise risk management and compliance management framework.

In addition, the candidates having experience in the publicly listed company or who led an organization through an initial public offering phase would get preference.

This move seems juxtaposed to the ambition of NSE to go public.

After the deadline, a basket of candidates will be selected by the nominations and remuneration committee (NRC) of the company.
NSE appoints a selection committee, made up of NRC members and independent external members, to make recommendations to the board, which subsequently sends the names to Sebi for final approval.

Contributions Of NSE Managing Director and CEO Vikram Limaye:

Limaye was the MD and CEO of IDFC before joining the NSE. Limaye, the current CEO, is credited with rebranding the NSE, and derivatives trading grew dramatically under his watch.

During the serving period of Limaye, NSE’s revenue grew from Rs 2,681 crore in FY17 to Rs 8,500 crore (estimated) in FY22.
Net profit increased from Rs 1,219 crore in FY17 to Rs 4,400 crore in FY22. In addition, the return on equity ( ROE) grew 17% to 34% between FY17-FY22.

Notably, NSE expanded through all segments of business, including currency futures and options and equity futures and options, during the period under review.

NSE Controversy:

Sebi has penalized NSE’s former MDs and CEOs, Ramkrishna and Ravi Narain, and others, in a matter related to the appointment of Anand Subramanian as group operating officer and advisor to then MD Ramkrishna, amongst many others.

The market regulator said that Ramkrishna was following some “yogi” orders in the appointment of Subramanian.

Not only this, she is alleged that she was sharing confidential information, including the exchange’s financial and business plans, dividend scenario, financial results with that Yogi, dwelling in the Himalayas. She even took advice from Yogi over the performance appraisals of the exchange’s employees.

Ramkrishna describes Yogi as some “spiritual force that could manifest itself anywhere it wanted and did not have any physical or locational coordinates and largely dwelt in the Himalayan range”.

By Harshita Sharma

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