Vikram Limaye not interested in applying for second term as NSE CEO & MD

Vikram Limaye, the National Stock Exchange’s managing director and chief executive officer (MD and CEO), has decided to leave the company after his first term ends in July of this year. 

“I have informed the board that I am not interested in a second term and will therefore not be applying and participating in the process that is underway,” Limaye told ET.

Also Read| Chitra Ramkrishna, former NSE CEO arrested in co-location case: Report

On July 16, his five-year term will come to an end. He is eligible for another term, but he will have to go through the selection process again, competing with external candidates. The NSE issued an advertisement last week seeking applicants for the MD and CEO positions for the upcoming five-year period. Korn Ferry, a consulting firm, has been appointed to monitor the process.

Also Read| NSE Scam: Ex-CEO Chitra Ramakrishna sent to 7-day CBI custody

“I have done my best to lead the organisation 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 said.

Although Securities and Exchange Board of India (Sebi) regulations state that it is based on a thorough performance evaluation, the term extension is neither automatic nor is it based on clearly specified performance standards.

Also Read| NSE Scam: Anand Subramanian is the ‘Himalayan Yogi’, confirms CBI

During Limaye’s tenure, NSE revenue increased from Rs 2,681 crore in FY17 to Rs 8,500 crore in FY22, and net profit increased from Rs 1,219 crore to Rs 4,400 crore, owing to a robust boom in stock markets, particularly post-COVID. During this time, the company’s return on equity increased from 17% to 34%. NSE has increased its market share in all business sectors, including currency futures and options, where it increased its share from 54% to 71% and 75%, respectively, during the last five years.

Also Read| Sensex jumps over 400 points while Nifty around 16,100 in early trade

“This period has been one of crisis management. But alongside, we have also scaled up, strengthened governance, worked on the regulatory aspects, invested in technology to be future-ready, and averted any major glitches including cyber-attacks,” said Limaye. “It’s been a lot of hard work. But we have come a long way,” he added.

However, from the perspective of a shareholder, there is little certainty on the long-awaited NSE listing.“There is no clear roadmap from Sebi or the finance ministry,” Limaye said. The NSE is searching for a candidate with IPO experience for the role of MD and CEO.