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Vikram Limaye’s BCCI stint will end in August, NSE tells Sebi

LiveMint logoLiveMint 11-05-2017 Jayshree P. Upadhyay

Vikram Limaye will finish his term in the four-member panel formed by the Supreme Court to manage the Board of Control for Cricket in India (BCCI) and recuse himself in case the apex court grants him an extension, said two people with direct knowledge of the matter.

Limaye’s appointment as chief executive officer of the National Stock Exchange of India (NSE) has been held up owing to the market regulator’s concerns about this dual role.

The NSE board has assured the Securities and Exchange Board of India (Sebi) that Limaye will not continue in his BCCI role beyond August, said the first person cited earlier. This was in response to a second set of questions sent by Sebi to NSE after a previous round in April.

Limaye, currently the managing director and chief executive officer of IDFC Ltd, and a NSE spokesperson declined comment on the matter.

On 31 January, Limaye was appointed by the apex court to the four-member Committee of Administrators (CoA) to manage the affairs of the BCCI. He was appointed for a period of six months.

“Sebi was uncomfortable that his dual responsibilities would hamper his duties and role at NSE. The exchange has assured that Limaye’s role is non-administrative and is finite. He would ensure that his duties towards NSE are not hampered,” said the second person.

The market regulator is satisfied by this response since it gives clarity to the issue and the regulator may clear his appointment in the coming weeks, said this person.

An email sent to Sebi was not answered immediately.

NSE is expecting Limaye to join the exchange by June. It expects to start roadshows for its initial public offering (IPO) within a quarter of Limaye’s taking charge, said the first person.

NSE has already filed a draft prospectus and its IPO would see existing shareholders selling 25% shares to the public through the offer for sale (OFS) route.

“The exchange is hopeful that Limaye would assume charge at NSE in June. Typically, August is a lean period for US investors, so the exchange is targeting its roadshows by September,” said the first person.

“In any case NSE did not want to list without resolving the co-location issue. So a September timeline seems fairly adequate as independent auditor would submit its report by May end,” this person added.

On 27 April Mint had reported that NSE’s public offering would be delayed till the bourse resolves the allegations of providing unfair access to certain brokers on its co-location platform and has a full-time chief executive officer in place.

Separately, a conflict of interest emerged on the BCCI panel when it choose to appoint Dhruva Advisors LLP as a tax adviser to the cricket body. The Print, a news media website. first reported this on 10 May.

Dinesh Kanabar, CEO of Dhruva Advisors, was part of the four-member search committee that picked Limaye as CEO of NSE. Kanabar is also an independent director at NSE.

“As a prudent measure corporate governance measure Dhruva was not appointed. This appointment could have later raised questions of conflict of interest,” said the second person.

Dinesh Kanabar, CEO of Dhruva Advisors, was part of the four-member search committee that picked Limaye as CEO of NSE. Kanabar is also an independent director at NSE.

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