NSE invites applications for MD & CEO post amid Chitra Ramkrishna fiasco

India's largest bourse, the National Stock Exchange (NSE), on Friday invited applications for a new managing director and chief executive officer as it faces allegations of governance lapses under its former MD & CEO Chitra Ramkrishna.

In a newspaper advertisement, the world's largest derivatives exchange by volume specified that the candidates must have over 25 years of work experience and a "track record of strengthening corporate governance".

The five-year term of NSE's current chief executive, Vikram Limaye, ends in July.

The new CEO is also expected to steer the exchange's plan to launch an initial public offering (IPO).

"Exposure to operating in a publicly listed company or having led an organization through an 'Initial Public Offering' process will be an advantage," reads the job description. SEBI, however, has yet to give its nod to NSE to go public.

Apart from domain knowledge in various aspects of financial markets, candidates must have a minimum experience of five years in a leadership role, preferably as a CEO in the financial services sector, the post mentions.

Following the Chitra fiasco, the exchange is seeking applications from candidates with "highest ethical standards" having a track record of "enterprise risk management".

Candidates should be less than 60 years as of June 30, 2022. They also need to fulfil the eligibility requirements under the Companies Act, 2013 and SEBI regulations. The last date to apply is March 25, 2022.

The applications will be shortlisted by the Nomination and Remuneration Committee of NSE. The selection committee will recommend names to the board of NSE. Executive search firm Korn Ferry is assisting NSE find its next CEO & MD.

This comes weeks after the country's market regulator, the Securities and Exchange Board of India (SEBI), imposed penalties on Chitra Ramkrishna among others for taking executive decisions under the guidance of an alleged Yogi. The fine imposed on Chitra is ₹3 crore - less than 7% of her severance package of ₹44 crore, Fortune India had reported earlier.

Ramkrishna was accused of appointing Anand Subramanian as chief strategic advisor, without following any HR procedures; awarding him with stupendous salaries worth crores; and not complying with regulatory norms while conferring him with disproportionate official powers. Subramanian's salary before joining NSE was ₹15 lakh per annum.

Subramanian, who was arrested by Central Bureau of Investigation (CBI) last month, is a prime suspect as the mysterious Yogi who was remote-controlling Chitra during her tenure at NSE. Subramanian had been on the agency radar in the 2015 NSE co-location scam case in which some of the traders were allegedly provided preferential access to trade data.