Need better routing of savings to stocks: NSE CEO

National Stock Exchange (NSE) MD and CEO Vikram Limaye has spent most of his life running for banks. But of late, he has been busy fire-fighting, first at BCCI, where he was once appointed as a member of the committee of directors. He is now seeking to put issues so as at NSE, which has been battling one controversy after some other. He discussed his plans with TOI. Excerpts:

What’s your agenda going forward?

Market building is a big agenda for the next two-three years to facilitate financial enlargement. You wish to have higher intermediation of financial savings into the markets and there is still a big alternative in equities, where penetration ranges are low. We are seeing better penetration in retail but we wish to give extra tools to buyers to come to a decision on their investments. Development of the asset management business has been a very important building in the ultimate three years or in order it has provided a cushion in times when FIIs have withdrawn from the marketplace.

At the similar time, institutional participation needs to be greater. Today, whether or not it’s insurance, pension or mutual price range, their participation is slightly low essentially because of regulatory constraints. While equity markets are well evolved, the bond, currency and derivatives markets have a long technique to go. It will create a big and well functioning marketplace and cut back dependence of companies at the banking sector.

Technology is some other important agenda along side possibility management and we also are specializing in revamping our surveillance method. It’s important to focus on international collaborations. We attempted to collaborate in Bangladesh and there are other spaces, where relying at the alternative, we will look to facilitate the growth of other markets. Capital elevating will probably be the point of interest area, whether it is at the primary board or in other spaces corresponding to SMEs and startups.

What are you doing on startups?

We are running carefully with era eco-system, whether or not it’s VCs or investee firms. We also are running with Sebi, which has arrange a committee on rules for early stage firms. There may be some changes that may facilitate their listing. Our Nasdaq partnership will lend a hand us think about dual listing of bigger and extra mature tech firms. What is happening to your talks with SGX?

Depending on our dialog with SGX, we want to transfer liquidity from Singapore to GIFT City. We do not need to distribute liquidity and need to consolidate it in a single position. It isn't in the longterm hobby of Indian markets. Investors will be capable to trade Nifty, it is going to lend a hand SGX and will lend a hand us in development GIFT City. It’s a win-win for everyone. What about commodities? Will or not it's all delivery-based contracts since Sebi is insisting on it?

Sebi could be very willing but now not the whole thing will probably be delivery-based. We are launching trading in non-agri merchandise from October 1 — crude, metals and bullion. So, crude isn't amenable to delivery-based. But wherever it’s imaginable, we will go into delivery-based contracts. Bullion will probably be considered one of them. In the second segment, we will get into agri-commodities. There are significant product gaps in spaces corresponding to some business vegetation, which we are reviewing and we might get into them.

Do agricultural commodities divulge exchanges to political possibility because they are blamed for speculative trades on every occasion there is a value spike?

Yes, agri-commodities is a delicate area and, subsequently, it is more challenging additionally. Value chain needs to be evolved to achieve the suitable consequence.

How has Sebi investigation affected NSE’s plan, including listing?

While you will need to unravel legacy issues, it hasn’t are available the way of growing our industry or in the believe that people have in NSE.

What are you doing to keep away from a repeat of a identical episode?

We have addressed issues related to co-location and in keeping with a complete evaluation, we have achieved a large number of issues to beef up controls around the organisation — from processes, documentation to era. From a governance standpoint, we have raised the bar internally and externally. The matter surrounding the folk will go through a procedure.

How is the alternate dealing with the brand new controversy surrounding your chairman (Ashok Chawla, who has been accused through CBI in a case involving former FM P Chidambaram)?

With fresh changes to the Prevention of Corruption Act, govt approval is needed for serving and previous officers. Two months had been given to the companies. So, we will have to attend and spot.