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MUMBAI: Amidst all the controversies surrounding Chitra Ramkrishna, the former MD of NSE, the country’s largest stock exchange, its incumbent MD Vikram Limaye has informed its board that he will not seek a second term after his five-year tenure ends in mid-July.
Last week as per Sebi rules NSE had come out with an advertisement to look for an MD and Limaye was eligible to seek a second term.
In December 2016, after Ramkrishna was forced to leave NSE due to several governance issues, Limaye was brought in to clean up the mess left behind by bourse’s previous management. Before joining NSE in mid-2017, Limaye, a CA and an MBA by training, was a member of the Supreme Court-appointed panel of experts that was tasked with revamping India’s cricket board.
Limaye confirmed to TOI that he had spoken to the board members to communicate his decision to not continue as NSE’s MD post July 16 this year.
“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,” he told TOI. “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,” he said. Limaye also expressed his gratitude to all of NSE’s stakeholders, the regulators and the government for the support extended to him since he joined NSE.
During Limaye’s tenure at NSE, for three successive years starting 2019, it was the world’s largest derivatives exchange. Also, this month its international arm at GIFT City in Gujarat became the first bourse there to start trading and settlement of US-listed stocks like Apple, Alphabet, Amazon, Microsoft, Meta Platforms, Tesla and others.
During the last four and half years, NSE also increased its dominance in almost all the trading segments it’s present. In the cash segment it now has a 92% market share, up from 85% in fiscal 2017 while in the equity futures and options segments it’s captured the whole market. In the currency futures segment its market share has grown from 54% in FY17 to 71% while in the currency options it’s now at 75% market share, up from 63%, exchange data showed.
The expanding market share in various segments also reflected in its consolidated revenue and profits. From a total revenue of Rs 2,681 crore in FY17, in nine months ended December 2021 it had clocked Rs 6,494 crore. Also NSE’s net profit during the nine months of this fiscal was Rs 3,533 crore, from Rs 1,291 crore during FY17.
NSE shareholders TOI spoke to said that the management under Limaye had improved workings of the exchange on various fronts including openness about its interaction with stakeholders, governance, technology and business development.
One important issue that still remains to be addressed is the listing of the exchange. Due to several legacy issues like the one relating to co-location of brokers’ server on NSE’s premises and access, appointing people with questionable experience and antecedents, muddy control structures and unwillingness to communicate openly with the regulators, NSE failed to get a regulatory nod for its IPO. Although NSE had filed a draft offer document for its IPO in December 2016 and had tried to revive the same a couple of times in the last five years, various investigations had stopped it from taking it forward.
Last week as per Sebi rules NSE had come out with an advertisement to look for an MD and Limaye was eligible to seek a second term.
In December 2016, after Ramkrishna was forced to leave NSE due to several governance issues, Limaye was brought in to clean up the mess left behind by bourse’s previous management. Before joining NSE in mid-2017, Limaye, a CA and an MBA by training, was a member of the Supreme Court-appointed panel of experts that was tasked with revamping India’s cricket board.
Limaye confirmed to TOI that he had spoken to the board members to communicate his decision to not continue as NSE’s MD post July 16 this year.
“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,” he told TOI. “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,” he said. Limaye also expressed his gratitude to all of NSE’s stakeholders, the regulators and the government for the support extended to him since he joined NSE.
During Limaye’s tenure at NSE, for three successive years starting 2019, it was the world’s largest derivatives exchange. Also, this month its international arm at GIFT City in Gujarat became the first bourse there to start trading and settlement of US-listed stocks like Apple, Alphabet, Amazon, Microsoft, Meta Platforms, Tesla and others.
During the last four and half years, NSE also increased its dominance in almost all the trading segments it’s present. In the cash segment it now has a 92% market share, up from 85% in fiscal 2017 while in the equity futures and options segments it’s captured the whole market. In the currency futures segment its market share has grown from 54% in FY17 to 71% while in the currency options it’s now at 75% market share, up from 63%, exchange data showed.
The expanding market share in various segments also reflected in its consolidated revenue and profits. From a total revenue of Rs 2,681 crore in FY17, in nine months ended December 2021 it had clocked Rs 6,494 crore. Also NSE’s net profit during the nine months of this fiscal was Rs 3,533 crore, from Rs 1,291 crore during FY17.
NSE shareholders TOI spoke to said that the management under Limaye had improved workings of the exchange on various fronts including openness about its interaction with stakeholders, governance, technology and business development.
One important issue that still remains to be addressed is the listing of the exchange. Due to several legacy issues like the one relating to co-location of brokers’ server on NSE’s premises and access, appointing people with questionable experience and antecedents, muddy control structures and unwillingness to communicate openly with the regulators, NSE failed to get a regulatory nod for its IPO. Although NSE had filed a draft offer document for its IPO in December 2016 and had tried to revive the same a couple of times in the last five years, various investigations had stopped it from taking it forward.
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