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.
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.