Capital and commodity market regulator Securities and Exchange Board of India (Sebi) has asked the National Commodity and Derivatives Exchange Limited (NCDEX) to invite fresh applications for its managing director post, it is learnt. The regulator did not find any of the three applicants suggested by the exchange suitable owing to lack of agri-business experience.
NCDEX is looking for a new chief as its Managing Director Vijay Kumar Venkatraman’s tenure would end shortly. Venkatraman’s term was supposed to end on January 18. However, Sebi has now given him three months’ extension and asked the exchange to invite fresh applications for the top job, market sources told Moneycontrol.
“NCDEX has sent three new names. But none of the applicants has any experience in the agri business. The regulator has now asked the exchange to repeat the whole selection process,” an official source said on condition of anonymity.
NCDEX has declined to comment.
“NCDEX mainly deals with agri business and the regulator has been working hard to engage real farmers in the market. To woo farmers, the regulator has foregone the fees in the options category. It looks like Sebi does not want anyone without an agri business background to head the exchange,” another source added.
NCDEX mainly deals in agri commodities. However, of late, its trading volume, which used to be around Rs 4,500 crore a day, has declined to around Rs 2,500 crore. Sebi is concerned about the performance of the exchanges as the volume is not picking up. Last year, it had asked the NCDEX board to submit a growth plan.
Venkatraman joined NCDEX on January 18, 2018, for a three- year period. Though he could be appointed for a five-year tenure as per exchange regulations, Venkatraman got only three years, and so he is eligible for another term. In his case, the exchange has not prepared an assessment report of his tenure.
Venkatraman has more than 25 years of experience in agri business. He was the chief business officer at NCDEX from 2009 to 2014. He had also worked with firms such as Britania, National Bulk Holding Corporations, Cargill and ITC.
“Kumar’s tenure was satisfactory. The exchange has launched options products and non-agri-products during his time,” a broking firm official told Moneycontrol.
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