SEBI approves Ashishkumar Chauhan’s appointment as new NSE head

Ashishkumar Chauhan is expected to take over as managing director and CEO of the National Stock Exchange now that the nomination has received approval from capital markets watchdog SEBI.

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The National Stock Exchange announced on Sunday that Ashishkumar Chauhan will take over as managing director and CEO after receiving approval from capital markets watchdog SEBI.

The appointment of Chauhan, who is currently the MD and CEO of BSE, is for a five-year term. Chauhan’s employment with BSE, which began in 2009, is set to expire in November.

Vikram Limaye, whose five-year tenure at the helm of the NSE came to an end on Saturday, will be replaced by him. Despite being qualified for another tenure at the NSE, Limaye chose not to apply.

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The Securities and Exchange Board of India (SEBI) has approved Chauhan’s appointment as the MD and CEO of the NSE, according to a statement from the NSE.

According to the statement, his appointment is contingent on his acceptance of the offer offered to him and the fulfilment of other requirements, including shareholder approval.

The NSE governing board has appointed an internal executive committee to oversee the company’s operations until the new MD and CEO takes over. Following the appointment of the new chief, the committee will be disbanded.

The internal executive committee is made up of Shiv Kumar Bhasin, Chief Technology & Operations Officer, Yatrik Vin, Group CFO & Head Corporate Affairs, Priya Subbaraman, Chief Regulatory Officer, and Somasundaram KS, Chief Enterprise Risk & Information Security Officer.

Being one of the NSE’s founders, Chauhan has the difficult challenge of leading the exchange while it is under regulatory investigation for governance failures at the bourse as well as the co-location issue.

Chitra Ramkrishna, the company’s previous MD and CEO, was fired as a result of the co-location scandal and later arrested.

Additionally, everyone’s attention is now focused on the BSE to see who will succeed Chauhan in the top position at the exchange. The search for a new MD and CEO has already started at BSE.

A maximum of two terms of five years each are permitted for the head of a MII under the new market infrastructure institution (MII) guidelines.

Due to his work at the NSE from 1993 to 2000, Chauhan, an IIT and IIM-trained technocrat, is regarded as the originator of contemporary financial derivatives in India. Additionally, he was in charge of developing the first screen-based trading and is credited with founding the Nifty index. He began his work with IDBI as a banker.

By completing its IPO, reviving its revenues, introducing mobile stock trading to India, and diversifying into new markets like spot markets, power trading, mutual fund and insurance distribution, SME, and equity derivatives, Chauhan helped the BSE become the fastest exchange in the world with a 6 microsecond response time.

Additionally, Chauhan has expertise in effectively managing an IPO, having done so for the BSE. One of the qualifications NSE was searching for in its new boss was this.

The NSE has long planned to launch its debut share offering. The intention to go public, however, was sidetracked when the bourse became involved in a colocation dispute where it was claimed that some brokers were unfairly granted access to the exchange data feeds over other members.

NSE issued a call for applications in March for the positions of MD and CEO. Candidates with IPO experience were invited to apply for the top position.