Vikram Limaye says will not seek second term as NSE CEO

Under Vikram Limaye, NSE has grown revenue from Rs 2,681 crore in FY17 to Rs 8,500 crore in FY22e and net profit from Rs 1,219 crore to Rs 4,400 crore during the same period, on the back of a strong surge in stock markets especially after COVID

Vikram Limaye, managing director and chief executive officer (MD and CEO) of National Stock Exchange, has decided to call it quits at NSE when his first term ends in July this year. "I have informed the board that I am not interested in a second term and will therefore not be applying and participating in the process that is underway,” Limaye said.

His five-year tenure will come to an end on July 16. According to the Sebi-mandated process, he is eligible for another term, but will have to go through the selection process all over again, competing with external candidates. Some experts interpret this as an indication that he may not be the preferred candidate. Last week, the NSE had put out an advertisement calling for candidates for the MD and CEO role for the next five-year term. Consultancy firm Korn Ferry has been hired to oversee the process.

Limaye’s withdrawal from the selection race, having to go through the rigmarole after having proved himself for the past five years, is understandable, but why he may not be the preferred candidate is perplexing. “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," he said. Calls to some directors went unanswered.

Vikram Limaye is eligible for another term, but will have to go through the selection process all over again, competing with external candidates, which some experts interpret as an indication that he may not be the preferred candidate

During Limaye’s period, NSE has grown revenue from Rs 2,681 crore in FY17 to Rs 8,500 crore in FY22e and net profit from Rs 1,219 crore to Rs 4,400 crore during the same period, on the back of a strong surge in stock markets especially post-COVID. The company’s return on equity moved up from 17% to 34% during the period. NSE also managed to hike its market share in all segments of business, including currency futures and options where its share went up from 54% and 63% to 71% and 75% respectively during the past five years.

“This period has been one of crisis management. But alongside, we have also scaled up, strengthened governance, worked on the regulatory aspects, invested in technology to be future-ready, and averted any major glitches including cyber-attacks,” said Limaye. “It’s been a lot of hard work. But we have come a long way,” he added.

Under Vikram Limaye, NSE's return on equity moved up from 17% in FY17 to 34% in FY22e

Equally, there have been no significant findings or closure on the extent of misconduct, unlawful gains or evidence of political patronage during the previous regime, as was suspected. Earlier this month, there was also a change of guard at Sebi. Former chairman Ajay Tyagi, who was largely seen as an able regulator, was not offered an extension. Right before his term ended, Sebi’s order on NSE was criticised for dishing out juicy personal details of the fallen NSE CEO Chitra Ramkrishna and Anand Subramanian who was appointed at her discretion, rather than clearly cracking the puzzle with solid investigation. Tyagi was replaced by Madhabi Puri Buch, who took over the reins recently.