National Stock Exchange (NSE), the country’s premier bourse, has been without a chairperson for more than eight months now.
Former chairman Girish Chandra Chaturvedi’s term ended November last year. The Securities and Exchange Board of India is yet to suggest a suitable replacement, said a person in the know.
Regulation 23(2) of the SECC regulations provides that the appointment of a Chairperson has to be from among the public interest directors (PIDs) with the prior approval of SEBI. The Chairperson heads the Board and is accountable for its overall efficiency.
“The new chairperson’s name has not yet been furnished by SEBI,” said an industry official.
It is not clear if the absence of a chairperson will impact the bourse’s plans for an initial public offering in any way.
An email sent to NSE and SEBI did not get an immediate response.
In its order related to the colocation matter, SEBI had given directions barring NSE from raising funds from the market, through the issuance of equity, debt or other securities for six months from the order dated April 30, 2019. NSE has requested SEBI to convey its no-objection to enable it to proceed with its IPO plan and for filing the draft prospectus. The bourse is currently awaiting a reply from SEBI.
NRC appointments
Delay in the appointment of PIDs has impacted the functioning of the exchange's Nomination & Remuneration Committee (NRC).
Until last year, NRC comprised K Narasimha Murthy (PID); Girish Chandra Chaturvedi (PID) and S Sudarshan (PID) as members with K Narasimha Murthy (PID) as its Chairman. The terms of Chaturvedi and Murthy ended on November 27, 2023.
With just two PIDs, the NRC could not be re-constituted and all matters related to NRC were directly placed before the Board between November 28, 2023 and May 03, 2024.
The applications seeking re-appointment of the three PIDs — Chaturvedi, Murthy and Mona Bhide — were made to SEBI twice in 2022 and in March 2023. Another letter to expedite the approvals was sent to SEBI on September 11 last year.
The appointments of Rajesh Gopinathan and Justice (Retd.) Abhilasha Kumari as PIDs were approved by the regulator for three years on April 23. The NRC was re-constituted on May 3, with Kumari as Chairperson, and Ravindran, Sudarshan and Gopinathan as members.