Vikram Limaye, the new managing director (MD) and chief executive officer (CEO) of the National Stock Exchange (NSE), on Monday said his immediate priority was to resolve a regulatory investigation facing the country’s largest bourse and improve relations with stakeholders.
“The immediate priorities for me are to resolve the co-location issue with Sebi. Then, we need to obviously improve various stakeholder relationships whether it’s with Sebi, government, clients, media, employees,” Limaye told Reuters.
While NSE has engaged Deloitte for a forensic audit of its equity derivatives platform, it has asked EY to carry out a forensic audit into cash markets and currency derivative platforms of the NSE is still underway.
In his communication to NSE employees earlier in the day, Limaye said: “While currently the institution is faced with certain challenges, I am confident we will overcome these issues by working together and emerge as a stronger and better organisation”.
“I am very optimistic about the future and I strongly believe the best is yet to come for the NSE Group. Let’s work together with a sense of purpose, positive energy, creativity/ innovation and collaboration,” he said.
Limaye took over as the NSE CEO on Monday at a time when the exchange was facing a probe from market regulator the Securities and Exchange Board of India (SEBI) about whether company employees provided unfair access to co-location servers to select brokers. The probe has delayed a much-anticipated initial public offering (IPO) of the NSE that bankers had said could raise up to $1 billion.
Limaye who was previously CEO of IDFC Ltd, also has to face regulatory scrutiny after the NSE suffered a technological glitch that caused widespread disruptions in trading last week. The exchange’s standing committee on technology will review the problem and approve measures to prevent recurrence of such glitches, he said. “The root cause of the problem would be addressed and we will discuss and report it to the finance ministry and Sebi,” Limaye said. Asked if he is looking to rejig the team at NSE, Limaye said, “the exchange has a royal and committed workforce. However, I will see if there are any gaps or re-positioning required”.