The National Stock Exchange (NSE) of India, the country’s leading stock exchange, began its search for a new chief executive officer (CEO) as the five-year term of the current chief Vikram Limaye is ending in July.
India’s largest bourse, the NSE, faces claims of governance lapses and, as a result, has long delayed it’s Initial Public Offering (IPO).
Indeed, the exchange’s plan to go public in 2017 was derailed by accusations that some officials provided high-frequency traders unfair access to speed up algorithmic trading.
The search comes after the market regulator penalised former chief Chitra Ramkrishna, among others, following an investigation that showed she had sought advice for years from an outsider she described as a Himalayan yogi.
The exchange has invited applications from candidates having IPO experience for the role of the top post before March 25, according to a public notice issued on Friday, which showed executive search firm Korn Ferry was assisting in the search.
The incumbent CEO, Mr Limaye, is also eligible for another term. However, as per the SEBI’s rule, the current chief needs to compete with other candidates to win the next term. He was appointed as the NSE chief in July 2017, following the exit of Chitra Ramkrishna.
Mr Limaye is credited with rebranding the NSE. Trading in derivatives will witness tremendous growth under his leadership.
Listing out eligibility criteria, NSE’s notice stated that the candidate must have a track record of strengthening corporate governance, enterprise risk management and compliance management framework.
In addition, the candidates with exposure to working in a publicly listed company or having led an organization through an initial public offering process “will be an added advantage”, it added.
After the deadline, the candidates will be short-listed by the nominations and remuneration committee of the company.
A selection committee set up by the NSE, comprising NRC members and the independent external members, will recommend candidates to the board, then send the name to the SEBI for final approval.
The NSE is facing the regulatory probe in a case of governance lapses and in the colocation matter where certain brokers were allegedly given unfair access to the exchange data feeds over other members.
India’s market regulator has said the NSE and its board were aware of the interactions with the controversial opponent but had decided to “keep the matter under wraps”.
In response to public criticism, the NSE said it was “committed to the highest standards of governance and transparency” and described the issue as “almost six to nine years old”.