Amid the ongoing troubles that the National Stock Exchange (NSE) faces, Vikram Limaye, the incumbent MD and CEO of the exchange, has decided not to seek another term after his five-year tenure ends in July.

In a telephonic conversation with BusinessLine, Limaye said he had done his best to turn around NSE and wanted to explore other avenues. “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. My tenure ends on July 16, 2022. I have done my best to lead the organisation in a very difficult period and to stabilise, strengthen and transform the NSE. We have come a long way in terms of controls, governance, technology, regulatory effectiveness and business growth,“ Limaye said.

The NSE had recently issued newspaper advertisements calling for applications for the post of MD and CEO since rules require that even the incumbent candidate compete with other eligible players for another term. Limaye said his decision was not due to the ongoing investigation against the former top NSE executives, including Chitra Ramkrishna.

Feathers of his cap

A former banker and CEO of IDFC, Limaye came to NSE in June 2017, just a few months after his predecessor Ramkrishna quit the exchange. NSE holds the distinction as the world’s largest equity derivatives exchange since 2012 but under Limaye, its volumes witnessed a stupendous growth.

In fact, in February last month, NSE’s derivative volumes touched a landmark ₹100-lakh crore. Naturally, the soaring volumes also got more revenues for NSE and the profit after tax rose to ₹4400 crore during FY22 from ₹1,219 crore in 2017. But more than the galloping market volumes and profits, it was Limaye’s humble and calm demeanor that made him popular in the office as a boss, NSE insiders said.

Misses

It was no secret that the NSE had legacy technology issues when Limaye joined the exchange and also an image problem since Ramkrishna had left behind a raging co-location scam controversy.

Experts and NSE watchers said these two areas became the Achilles heel of Limaye’s tenure, mainly as the exchange still has officials who were indicted by market regulator SEBI for various lapses in co-location matters and corporate governance issues. Those close to Limaye said he could have let these officials stay since they had appealed the SEBI orders in SAT and won a stay. But that has only come back to haunt the exchange with the CBI now stepping up its investigations into the co-location scam and calling NSE officials for questioning.

Experts said initially, Limaye appeared promising on the matter of improving NSE’s technology. Reportedly, the annual opex and capex for the exchange have risen by nearly 8-10 times from ₹400 crore in 2019 to ₹4,000 crore for FY23 (expected). A lion’s share of this was being incurred on technology. Despite this, repeated instances of tech glitches in five years, prominently the four-hour shutdown in February 2021 and another major mishap on March 7 show that the exchange was still lagging on this front.

Additionally, NSE’s IPO plans could not pass muster since the exchange chose to challenge a SEBI order on co-location and fine of ₹1000 crore with the Securities and Appellate Tribunal. This has put NSE in a spot and the exchange is in no position to set any timeline for its IPO. Still to Limaye’s credit, the delay in the IPO may not impact the exchange in any way as it is not required to raise cash for its business but mainly to give an exit to shareholders.

Limaye said he leaves NSE satisfied with what he could achieve in five years. “I am grateful to all stakeholders, regulators and the government for the support extended to me,“ he said.

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