Vikram Limaye joined as the National Stock Exchange’s managing director and chief executive officer on July 17. Even though it has been less than a month since the 50-year-old veteran banker has taken charge of the country’s largest stock exchange, Limaye is already putting in 17-hour work days. He has spent a decade in the U.S. (first completing his MBA from Wharton, and then working on Wall Street for eight years). And before taking charge of NSE, he was the MD and CEO of IDFC and a member of the Supreme Court appointed committee of administrators for the Board of Control for Cricket in India (BCCI). Limaye spoke exclusively to Fortune India about his to-do list, the role of technology in exchanges, and how he intends to change the culture within NSE. Edited excerpts:
You’re the first CEO
outside of the founding team to run NSE. What’s at the top of your to-do-list? It’s a long list, which is good. I will be focussing on important issues such
as resolving the collocation issue and taking the NSE public. Simultaneously I will focus on strengthening stakeholder relations. Unfortunately,
relationships have suffered in the past few years be it government, clients,
regulators, member-brokers, shareholders, and employees. Another matter will
be to strengthen controls and processes, and of course business and market
development which will be an ongoing process.
Though equities is relatively well-developed, there can be more
innovation on the products front. For instance, when it comes to equity, the
primary market needs to be more robust—there is no reason why tech startups
should be looking at the NASDAQ for listing, they should be looking here. The bond
market is an area that needs urgent attention as it funds the country’s growth.
Interest rate futures and credit derivatives can also develop but depends on the
underlying debt market. Non-exchange revenue streams [which constitute about 10% of revenue] like the index business, data, information technology, and
education can double or treble from here on out.
What are your plans
for gold products? Although exchanges are not allowed to trade in commodities, based on what
is happening within the Securities and Exchange Board of India (Sebi), chances are that within the next 12 months or even sooner, we’ll be allowed to
do so. It’s just a matter of time.
What about trading in
bitcoins and cryptocurrency, will that be an area of interest? I know it can’t be ignored but I don’t
see comfort with it at a regulatory level. That being said, since blockchain
and other such products could be disruptive, we remain alert and will keep a track
of it.
It has been less than a month since Vikram Limaye took
charge as MD and CEO of NSE and he is already putting in 17 hours a day. He has
a long to-do list which he says is a good thing.