Chitra Ramkrishna and the Mysterious Anand Subramanian, Raided by I-T Dept
Moneylife Digital Team 17 February 2022
The income tax (I-T) department has conducted searches at the Mumbai residence of Chitra Ramakrishna, former managing director (MD) and chief executive officer (CEO) of the National Stock Exchange (NSE) and the ‘mysterious’ Anand Subramanian (Subbu), who was appointed and promoted as group operating officer (GOO) by Ms Ramkrishna. 
 
For the first time ever, we have a picture of the highly controversial and mysterious Anand Subramanian. This is significant because, as Sucheta Dalal and Debashis Basu wrote in their book Absolute Power on NSE , “A senior NSE executive pointed out how there is little or no information about him on Linkedin or the numerous websites that track corporate profiles.
 
Internal guidelines of large international companies such as Paypal say that it is highly suspicious if someone’s footprint has been completely wiped out from the net. Mr Subramanian, who had no digital footprint, went on to become the group operating officer in a very large, highly technology-intensive and sensitive organisation like the NSE, which is a first-line regulator.”
 
At around 7am, about eight to nine officials from the I-T department landed at the residence of Ms Ramkrisha and her mother’s house. Ms Ramkrishna stays at Chembur. Her mother stays in a separate house. 
 
The I-T department also carried out a search operation at the residence of Mr Subramanian, who has remained a mystery for everyone outside NSE.
 
The searches are aimed to check charges of tax evasion and financial irregularities against her and others, a media report says quoting officials.
 
There are allegations that she made illegal gains when she passed on internal information of NSE to an unknown third person, whom she referred to as Himalayan Yogi. 
 
The Securities and Exchange Board of India (SEBI) recently penalised Ms Ramakrishna for passing sensitive information about NSE to this unknown or faceless spiritual force residing in the Himalayas.
 
 
In an order issued last week, SEBI barred Chitra Ramkrishna, Ravi Narain, former vice-chairman and Anand Subramanian, former GOO and advisor to MD and CEO, from associating with any market infrastructure institution (MII) or any intermediary registered with SEBI. While imposing a monetary penalty of Rs3 crore on Ms Ramkrishna, the market regulator has asked NSE to forfeit her excess leave encashment of Rs1.54 crore and the deferred bonus of Rs2.83 crore. The market regulator also restricted NSE from launching any new product for six months. (Read: Latest SEBI Order against NSE’s Former Management including Chitra Ramkrishna Reveals Shocking Misgovernance and Improper Equations Suppressed by Board)
 
Chitra Ramkrishna resigned from NSE on 2 December 2016. However, SEBI raised serious questions on how the NSE board allowed her to exit from the Exchange, despite the misconduct in appointing and sharing confidential information with an unknown person. 
 
“SEBI examination found that in spite of having knowledge of such grave irregularities and misconduct on the part of Chitra Ramkrishna on the appointment of Anand Subramanian in the NRC and NSE board meeting held on 21 October 2016 and knowledge of exchange of confidential information by Chitra Ramkrishna with an unknown person in the NSE Board meeting held on 29 November 2016, NSE and its NRC and board members, in the board meeting held on 2 December 2016, allowed Chitra Ramkrishna to exit through resignation despite having committed such bizarre misconduct as reflected from her email correspondence with a fictitious email address apparently belonging to Anand Subramanian without taking any action in this regard,” the order says.
 
The SEBI order tabulates and documents the extraordinary rise of Anand Subramanian, with the connivance of the NSE board, without declaring him a key management person (KMP) even while he was appointed on the boards of NSE’s subsidiary companies and almost every decision of the Exchange, since his appointment as a consultant, was routed through him. He also availed of perks that were not given to any other consultant; he travelled first class around the world, often accompanying Ms Ramakrishna and was allowed to spend two to three days a week in Chennai, where his wife was also employed by the Exchange. 
 
More importantly, his evaluation did not go through the HR (human relations) process and was decided by Ms Ramakrishna alone. It is a scandal that all this was unknown to the regulator, although NSE is a highly regulated and very sensitive market institution.
 
After receiving the complaints, SEBI, four times in 2016, asked NSE to clarify if Anand Subramanian had been designated as KMP. Mr VR Narasimhan, the then CRO, told SEBI that there was no violation of Securities Contracts (Regulations) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC Regulations) in the appointment of Mr Subramanian and the MD, being a competent authority, had appointed him.
 
Anand Subramanian was asked to resign in October 2016 and the drama of his removal has been documented by Moneylife editors Sucheta Dalal and Debashis Basu in their book Absolute Power: Inside Story of the National Stock Exchange’s Amazing Success, Leading to Hubris, Regulatory Capture and Algo Scam, released in June 2021. SEBI has been sitting on this information since 2014 and issued its order only now.
Comments
patelparul2607
4 months ago
During UPA GOVERNMENT, When EVER CHIDAMBARAM Was Coming on CNBC & Giving Statements During Market Hours, Every time Market was Reversing, Having Movement of +/-50 to 150 NIFTY Within Minutes. 25 to 30 Such Incidents Can be Found If Those Live Commissions Are Checked. SEBI, NSE, CBI & IT Department Can Check In Details...His Adverse Comments.
surajit.som
4 months ago
CBI arrests Anand Subramanian in alleged stock market manipulation case. Do we finally know who is the Yogi ? Time to arrest Maam Chitra who had appointed him in the first place and made him number 2 in NSE.
mjranadive
4 months ago
The clean up process needs severe punishment at not just at NSE (Chitra & previous MD, Anand, Chief of HR, CFO, Compliance In Charge , Independent Board Members etc), but also whole team at SEBI between 2010 to 2016.

The formation of NSE was to create a techno savvy platform as a competition to BSE (which was also used by some powerful brokers to manipulate), but the very purpose gets defeated when such corrupt officials are heading it. And look at SEBI - the officials here are not just poor cats , but appears to be hand in glove with corrupt NSE heads, this is extremely worrisome.

To Money life editors - while you are doing extremely superlative job as a whislerblower, such revelations do not get media attention by main line journalism for obvious reasons. Please think of strategy to get more publicity to your valuable investigative journalism with say joint tie ups with leading like minded organisations / publications. With LIC IPO likely to bring crores of innocent stock market investors at play, your role as a vigilant journalists will increase many folds.

Regards.
murlikmurthy
4 months ago
I feel that the whole episode is so implausible and i am at my wit's end tio understand how a bright woman like Chitra would do such a thing.I think she is being fixed by some powers that be, as she must have tread on their toes during her tenure.Should investigate BJP inclined big brokers and money bags who would have had a brush with her
v.sudarshan
4 months ago
A serious investigation into algo-trades and co-location is turning to be a pot-boiler for another series on the idiot box. I do not believe that Chitra R is naive or gullible to just lap up something that is sent over e-mail. The email Id @outlook.com is of recent origin while the relationship goes back two decades. So, what was the mode of communication then? Or were there more than one Yogi - a former SEBI/NSE insider followed by the Anand guy? Its a matter of shame that the forensic auditors have done such a shoddy job. To top that, SEBI has side-stepped the main issue. This seems to be reaching a point of no conclusion and probably will be soon forgotten unless there is continued interest in follow-up. It is very obvious that there are many people in "high places" involved in this saga.
letustryit
4 months ago
I must praise MoneyControl, they are doing best job as whistle Blower, Government should appoint you as third party invigilator or auditor, SEBI, BSE and NSE authorities will have sleepless nights, including few brokers and operators in the market.
soundaholix
4 months ago
SEBI more interested in useless actions like increasing margins and making life difficult for traders instead of catching big fries like Chitra
saharaaj
4 months ago
considering fragmented constellation of revenue agencies and revenue intelligence agencies expect series of visits to data mining ... agencies do not share intel as they are in Silos
bioinfolabexams
Replied to saharaaj comment 4 months ago
Looks like another woman may appear on all the broadsheets. God forbid.
bioinfolabexams
4 months ago
Financial scam at the top means that NSE is/was a Ponzi scheme controlled by a few. All the investor money and losses have been pocketed by the scamsters, unbeknownst to the common man. The stomach churns to think of the implications. God help our country - can only shed tears.
saharaaj
Replied to bioinfolabexams comment 4 months ago
wires may reach FM office ... present or past in TN some congressy or its associate seems to be on RADAR ...
bioinfolabexams
Replied to bioinfolabexams comment 4 months ago
Some say the stock market is a gamble. Looks like the NSE was reduced to a russian roulette.
vkamala2008
4 months ago
How come no Politician /Finance Experts / Finance Journalist questioned about the appointment of Anand Subramanian earlier especially when he has no Funance background or any visible authentic Professional Profile on the net . Why everyone acts surprised now ?
mcshekhar2009
4 months ago
All including Board Members should be arrested & Custodial Interrogation done by CBI
drksundaram
Replied to mcshekhar2009 comment 4 months ago
Exactly and all their assets should be confiscated. All crooks gang cheated the nation as a whole. We don't need China or anyone else as enemy
pranavam523
4 months ago
Wondering what the Board was doing.Even surprising why no action on Board Members or No investigation on the Board members.. something very very strange.. Looks like the Godman is having control over SEBI also..!!
sathyatnarayan
4 months ago

It is the honesty that is lacking. Terrible. But some times I feel these are normal when you repose trust in the head of the organisation and I have never seen members of Board of Company have taken resolutions seriously. Restrictions may be placed on the number of Company boards in which they can act as a director with remuneration on the same lines to as CEO with cost of maintaining independent aids for himself (other than insideer staff) to collect information independently) and to be made responsible for all day to day affairs.
pgodbole
4 months ago
It is futile to expect directors on regulatory or PSU boards, and indeed on several promoter owned private sector companies, to keep a hawk's eye on goings on in the institutions of which they are 'Superintendents' and report any misdeeds . These (often past their retirement age) directors are on the boards mostly either because of connections in government/bureaucracy or because of connections with those in Nomination and Remuneration Committees. Their role is mostly ceremonial in nature, often to complete the quorum. Their incentive to attend meetings? To collect sitting fees, lavish gifts, business class travel and stay in five star hotels, all at the cost of company. What were institutional nominee directors on board of IL&FS doing all these years, when company was indulging in large scale irregularities? And has any director ever been held responsible and prosecuted anywhere for dereliction of his fiduciary duties as a director?
surajit.som
Replied to pgodbole comment 4 months ago
One thing has been o
mitted : swimming with attractive lady at Seychelles !!!!!
jaishirali
4 months ago
One has to also question the role of the Directors in the whole NSE mess. If they slept so peacefully through all of this, they should be banned from becoming Directors of any public company, any central or state government entity and certainly any entity even remotely connected with the capital markets. If any Director from the current NSE Board wishes to sweep this matter under the carpet, let him/ her join the list of banned Directors. SEBI needs either more autonomy or people with a spine, otherwise it may as well be wound up, because it seems to act like the policemen in old Hindi movies, arriving when all the action is over. I wonder what the Government is waiting for.
pranavam523
Replied to jaishirali comment 4 months ago
Just act .Put them in jail
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