The Managing Director and CEO of the National Stock Exchange, Vikram Limaye, will not seek another term after his five-year tenure at NSE ends in July. Limaye has decided to call it quits despite being eligible for another five-year term, according to provisions laid down by SEBI (Securities and Exchange Board).
Limaye’s five-year tenure will end on July 16.
According to the SEBI-mandated process, if Limaye had chosen to stay for the second term, he would have to go through the selection process all over again. However, Limaye announced his decision a month before the completion of his tenure. “I have informed the board that I am not interested in a second term and will therefore not be applying or participating in the process that is underway,” Limaye said, as reported by Mint. He added, “We have come a long way in terms of controls, governance, technology, business growth, and effectiveness. I am grateful to all stakeholders, regulators, and the government for the support extended to me.”
Under Limaye’s leadership, NSE has flourished beyond expectations. As per numbers reported by Money Control, NSE’s revenue grew from Rs 2,681 crore to Rs 8,500 crore between the financial year 2017 and 2022, with its net profit hovering at Rs 4,400 crore.
Before Limaye made the announcement, NSE had released a notification on March 4, seeking applications from people for the position to lead India’s leading stock exchange platform. After Limaye, the next person chairing the NSE will be leading its possible and upcoming IPO (Initial Public Offering). The IPO was rolled into the discussion after the stock exchange platform faced defamatory charges of giving unfair access to some brokers.
As a result, NSE has been in frequent dialogues with SEBI, seeking the board’s permission to start the IPO process. Although NSE is financially stable right now, the new CEO and MD will be faced with the challenge to rectify their image and curb the effects of the reputational damage that NSE faced.
“This period has been one of crisis management. But alongside, we have also sided up, worked on regulatory aspects, strengthened governance, and averted major glitches, including cyber-attacks,” said Limaye.
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