The National Stock Exchange (NSE) has said its current managing director (MD) and chief executive officer (CEO) Vikram Limaye is not involved in the selection process of his successor.
In a tweet the exchange has said, “Mr. Vikram Limaye recused himself from the very beginning and was not involved in any way in the discussions surrounding candidates or at any stage in the process of selection of new MD & CEO.”
Mr. Vikram Limaye recused himself from the very beginning and was not involved in any way in the discussions surrounding candidates or at any stage in the process of selection of new MD & CEO. @PMOIndia @narendramodi @SEBI_India
— NSE India (@NSEIndia) May 10, 2022
NSE’s tweet was in reply to another tweet which said “NSE current CEO Vikram Limaye objected strongly to current BSE CEO being in short list due to personal rivalries.”
Sources said the board of NSE has submitted names of shortlisted candidates to the Securities and Exchange Board of India (Sebi). The market regulator is expected to decide on Limaye’s replacement soon.
WANTED: NSE CEO WITH A ‘25-YEAR TRACK RECORD’
National Stock Exchange (NSE) invites applications to the post of managing director (MD) and chief executive officer (CEO) until March 25
Current MD & CEO opts out for a second term
Korn Ferry screens applications, submits it to NSE’s Nomination and Remuneration Committee (NRC)
NSE’s NRC submits shortlisted candidates to the markets regulator
Securities and Exchange Board of India to decide on a new MD and CEO soon
Current MD and CEO Vikram Limaye’s term ends on July 16
In a newspaper ad, the NSE specified that the candidates must have over 25 yrs of experience and a “track record of strengthening corporate governance”
The names submitted to Sebi couldn’t be ascertained. People in the know said individuals from the stock exchange, regulatory, mutual fund, broking and investment banking space have shown interest. In March, NSE had invited applications for the post of MD & CEO. Consultancy firm Korn Ferry was hired to oversee the appointment process at NSE. However, the candidates have been shortlisted by the exchange’s Nomination and Remuneration Committee (NRC).
Limaye’s term at NSE ends on July 16. He was eligible for another five-year term but has decided to opt out.
In 2017, Sebi introduced new rules that require the MD & CEO of a market infrastructure institution (MII) to undergo an appointment process for a second term anew. In other words, the incumbent has to compete with fresh candidates to get reappointed. Also, the MD & CEO is now allowed a maximum of two terms of five years each.
Rival exchange BSE too has begun the search for a new MD & CEO. Its current MD & CEO Ashish Chauhan’s second five-year tenure ends in November 2022. BSE has appointed Egon Zehnder to oversee the appointment process.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.