A proposal from the Securities and Exchange Board of India (SEBI) to increase the upper age limit for managing directors (MDs) and chief executives of market infrastructure institutions (MIIs) has faced pushback from industry players, according to informed sources. The suggestion aims to raise the age cap from 65 to 70 years for top executives at MIIs, which encompass stock exchanges such as the National Stock Exchange of India (NSE) and BSE Ltd, as well as commodity exchanges like the National Commodity and Derivatives Exchange (NCDEX) and the Multi Commodity Exchange of India (MCX), along with the two depositories and clearing houses.
Sources indicate that the proposal is still under discussion, with SEBI soliciting feedback from industry stakeholders before proceeding with public consultation. Many participants reportedly oppose the change, questioning the broader implications of such a move.
Internal discussions at SEBI reveal divergent viewpoints among officials regarding the proposal. This suggestion emerges as key figures in MIIs, including BSE’s managing director and CEO Sundararaman Ramamurthy, approach the current age limit of 65, while the tenure of Arun Raste, MD and CEO of NCDEX, is set to conclude this June.
Critics argue that maintaining the current age limit ensures a timely transition within leadership and prevents excessive reliance on specific individuals. One source remarked, “This discipline should not be diluted for at best one immediate beneficiary.”
Industry Pushback
Relaxing the age limit could hinder succession planning and institutional rejuvenation, according to industry officials. A senior executive noted, “Extending the age limit could delay leadership transitions and affect the pipeline for next-generation executives.” They emphasized that in a country the size of India, claiming a lack of capable leadership options is difficult, especially as markets become increasingly technology-driven.
Another industry source stressed the unique nature of MIIs: “These are not ordinary companies. They operate critical market infrastructure. Stability is important, but so is periodic refresh in leadership.”
Regulatory Framework
Currently, SEBI regulations for MIIs enforce both tenure limits and an upper age cap of 65 for MDs and CEOs. While executives may typically serve fixed terms—often up to five years per appointment, pending board and regulatory approval—the age cap serves as a definitive endpoint.
These regulations are part of a governance framework that has been tightened over the past decade to tackle ownership, control, and potential conflicts of interest at systemically important market institutions. Given their crucial role in price discovery, clearing and settlement, and overall market stability, MIIs are subject to stricter fit-and-proper norms and governance standards.
Any changes to the age cap would necessitate SEBI board approval and public consultation. An email inquiry sent to SEBI for comments did not receive a response.
The article was published on April 26, 2026.
