NSE Seeks Applications for New Chief Amid Probes from Govt.

The National Stock Exchange, which is preparing to go public and has under regulatory scrutiny, has requested candidates with IPO experience to apply for the position of managing director and chief executive officer by March 25.

Vikram Limaye’s five-year term as MD and CEO expires in July, and he is eligible for another five-year term. He will, however, have to go through the appointment procedure all over again. Korn Ferry, a consulting firm, has been appointed to monitor the process.

In the aftermath of the NSE controversy, the Securities and Exchange Board of India (Sebi) overhauled the rules governing the appointment of key individuals at market infrastructure institutions (MIIs) in 2017.

The new rules allow the head of a MII to serve a maximum of two five-year terms. The extension is subject to a thorough performance evaluation and Sebi approval.

Last year, NSE requested a no-objection certificate from Sebi in order to proceed with its IPO and file the draught red herring prospectus. Due to reports of failures at the exchange’s co-location facility, the exchange’s listing ambitions have been postponed at least since 2016.

An order issued by Sebi against the NSE last month detailing flaws in governance and the hiring process under Ramkrishna might further delay the IPO, with central authorities, including the Central Bureau of Investigation, ramping up their investigation into the exchange’s activities.

Padmaja Chunduru was named MD and CEO of National Securities Depositories (NSDL) last year after her predecessor, GV Nageswara Rao, completed his second term. The second five-year term of rival BSE’s MD and CEO Ashish Chauhan expires in November 2022.

According to industry sources, prominent officials from leading MIIs and Sebi may apply for the position. They claim Limaye’s good grades increase his prospects of earning an extension, unless Sebi decides to hire someone new.

According to the advertisement notice published in newspapers on Friday, the NSE is looking for a candidate who has led a company through an Initial Public Offering process or has experience overseeing a listed company. The role will be based in Mumbai, where the NSE is headquartered, and the candidate must be under the age of 60 on June 30, 2022.

The requirements that are expected from the applicant are as follows:

• 25 years of experience; domain knowledge in various aspects of capital/securities/financial markets;
• Minimum 5 years at leadership level, preferably as a CEO in financial services sector;
• Must be abreast of relevant market developments, regulatory frameworks, product innovations and technology advancements in local and global capital market;
• Experience in engaging with diverse stakeholders like regulators, shareholders, business partners, customers, employees, and the Board;
• Exposure to operating in a publicly listed company or having led an organisation through an initial public offering (IPO) process will be an added advantage;
• A result oriented leader, persuasive and passionate communicator, with highest ethical standards

The aspirant must send their CV to management consulting firm Korn Ferry through mail.

Following the deadline, the applicants will be short-listed by the company’s nominations and pay committee. The NSE will form a selection committee to nominate candidates to the board, which will then send the final pick to the Securities and Exchange Board of India for approval.