"Madhu Kannan  will soon join Tata Sons as Group Head -- Business Development reporting to the Deputy Chairman, Cyrus P Mistry," Tata Sons said in a statement.
In a separate statement, BSE said: "Kannan has expressed his intention not to seek a new term at the expiry of his current term ending May 2012, to pursue another opportunity."
He will work with the BSE board to ensure that there is a seamless succession process, BSE added.
Kannan joined the BSE from Bank of America - Merrill Lynch where he was a managing director in the corporate strategy group.
Prior to Bank of America-Merrill Lynch, Kannan was senior vice president at NYSE Euronext.
During his stint at NYSE Euronext, he served in various roles including vice president, corporate client group, head of international listings (Asia Pacific region), and managing director, international strategy and business development of the exchange.
Kannan is an alumnus of BITS, Pilani and an MBA from Vanderbilt University, USA.
TCS chief N Chandrasekaran today took over as Nasscom Chairman for 2012-2013, the software industry body.