Vikram Limaye, the chief executive officer (CEO) of the National Stock Exchange of India (NSE), will not seek another term when his tenure ends in July, according to a LiveMint report published on Wednesday.
This means the next CEO, which has not yet been decided, will have to steer the process of the exchange’s initial public offering.
“I have informed the board that I am not interested in pursuing a second term and will, therefore, not be applying or participating in the process that is underway," Limaye was quoted as saying.
Limaye was appointed for a five-year term after former CEO Chitra Ramkrishna resigned without completing her term. Ramkrishna is currently in seven-day federal custody for her alleged role in the co-location scam.
NSE’s public offer was delayed because of the recent spate of regulatory orders and investigative actions against the former management. When the company first spoke of listing its shares in 2016, the exchange had just 70 shareholders and since then increased to 2,200. The valuation of the exchange also jumped from Rs 40,000 crore to Rs 2 trillion now.
“Investors are feeling impatient as the recent spate of regulatory orders and enforcement action has pushed the listing of NSE towards an uncertain future. They were patient till October 2019, but now they do not understand what the hold-up is. The pending litigation surrounding the co-location case and lapses in governance can be disclosed as risk factors in IPO documents, but the regulatory nod is pending," the LiveMint report said citing a person with direct knowledge of the matter.
In April 2019, the Securities and Exchange Board of India (Sebi) had held NSE and its former management guilty of giving unfair access to a few brokers when they accessed the exchange’s co-location facility. It had also barred the exchange from listing its shares for six months, which ended in October 2019.
Since then the exchange has written to the financial market regulator at least three times for permission to start the IPO process. However, it has not given a go-ahead yet.