Just days after the National Stock Exchange (NSE) invited bids for a new CEO and MD, Vikram Limaye, the incumbent, has informed the board that he is not interested in a second term and will not apply or participate in the process. The last date for applications is March 25.
Limaye, who completes his five-year term on July 16, told FE, “I have informed the board that I am not interested in pursuing a second term…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.”
Limaye took over after the controversial exit of the exchange’s former CEO Chitra Ramkrishna. Since then, he has been fighting battles on many fronts. When Limaye took over, NSE’s credibility was at rock bottom and the markets regulator was investigating whether the exchange gave privileged access to co-location servers for high frequency trades. Five years down the line, many things have changed at the NSE, but ghosts from Ramkrishna’s era continue to haunt the exchange and its management.
During Limaye’s tenure, NSE’s revenues have grown from Rs 2,681 crore in FY17 to an estimated Rs 8,500 crore in FY22. In the five-year period from FY17 to FY22, revenues have grown at a CAGR of 26% against 8% clocked during the preceding five years under Ramkrishna. The return ratios in the five years since FY17 clearly indicate the transformation, both regulatory, technological and financial, at the NSE.
Its market share has increased from 85% in FY17 to 92% in FY22, and in the derivatives segment it continues to hold 100% share. In the currency futures segment, too, NSE’s market share has grown from 54% in FY17 to 71% in FY22.
The new candidate for the job of NSE CEO has several challenges to face, including taking the exchange public via listing. Despite efforts, NSE could not follow through with the listing process in the last five years as the co-location scam continued to hang over its head.