The move which has been kept under wraps was cleared by the NSE board in its meeting held earlier last month. It is learnt that a formal announcement was to have been made only once the Sebi approval came through.

Patil's tenure was to have come to an end in November this year. He will now carry on till November, 2000.

When contacted, Patil confirmed that the NSE board has extended his tenure by another two years in the last board meeting (which was held on June 3).

The same board meeting had cleared the membership requirements for trading in derivatives as well as taken the decision for the exchange to get into stock lending through its clearing corporation.

The extension to Patil, who has been the founder of NSE is being attributed to the spate of developmental activity which is going on at the exchange.

The two key areas which havebeen stressed on by the exchange have been introduction of derivatives as well as speeding up the process of dematerialisation in the Indian markets.

"It was felt that since the progress on both these fronts is expected to get a major boost in the next couple of years, it would be better for the exchange if Patil stayed at the helm", said a source.

Patil who has already attained the age of 60 years, had earlier categorically said that he would not like to continue working in any capacity once his tenure comes to an end. He had told The Financial Express, when rumours of his going to the Reserve Bank of India were doing the rounds, that he would prefer to get back to academics, an area in which Patil has excelled.

"The board, has, however, convinced him that it would be better for the exchange if he stays on for some more time", said the source. "It is the decision of the board and one would abide by it", said Patil.

Patil has been in the forefront of modernisation of the Indian capital marketsand has been a strong votary of the technological excellence in this field. For the past three years, he has been concentrating on introducing derivatives trading at the exchange. This is finally expected to take-off in the third quarter of the year.