Comments
The National Stock Exchange (NSE) has begun the hunt for a new MD and CEO as the incumbent chief, Vikram Limaye, completes his five-year term on July 16. Although Limaye is eligible to apply for another term, rules by markets regulator SEBI stipulate that the incumbent has to compete with another candidate to win his next term.
Limaye is credited with re-branding of the NSE and trading has grown rapidly under him.
The race for the top post at NSE may be important since the exchange is awaiting SEBI nod for its IPO and is also embroiled in a controversy over the co-location scam. Also, the recurring tech glitches and controversies surrounding NSE’s technology infrastructure still remain the stumbling block for the exchange. Last year, SEBI had issued a show-cause notice to NSE officials for a three-hour trading halt. On Friday, the NSE issued an advertisement seeking another candidate since the process for the hunt of a new chief has to start at least six months prior to the ending of the incumbent’s term. The exchange has invited applications from candidates with at least 25 years of experience in financial markets and one who is well versed with stock exchange, SEBI and market regulations.
Since exchanges and depositories are key market infrastructure companies, SEBI has the final say on the appointment of the MD and CEO. In 2018, SEBI had rejected an extension of the term to PS Reddy at CDSL. The regulator had also written to the depositories and exchanges then, asking them to begin the procedure for the appointment of MD and CEO six months in advance. The procedure involves setting up of a committee involving board members of the exchange and two outside experts.
It is mandatory that one of the persons interviewed by the committee is an external candidate. After SEBI’s approval, the exchanges are also required to take approval from shareholders and give at least three months time to the candidate to serve a notice period in his or her existing job. Hence, six months time is required for the entire procedure.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.