SEBI Issues Rs3.12 Crore Demand Notice to NSE's Ex-boss Chitra Ramkrishna
Moneylife Digital Team 25 May 2022
Market regulator Securities and Exchange Board of India (SEBI) on Tuesday issued a notice to NSE's (National Stock Exchange's) former chief Chitra Ramkrishna asking her to pay Rs3.12 crore in a case related to governance lapses at the stock exchange, and warned of arrest and attachment of assets and bank accounts if she fails to make the payment within 15 days.
 
The notice came after Ms Ramkrishna failed to pay the fine imposed on her by SEBI.
 
In an order dated 11th February, SEBI had slapped a penalty of Rs3 crore on Ms Ramkrishna for alleged governance lapses in a case related to the appointment of Anand Subramanian as the group operating officer (GOO) and adviser when she was at the helm of NSE as its managing director and chief executive officer (MD & CEO), as well as for sharing confidential information of the company with an unidentified person.
 
Apart from penalising Ms Ramkrishna, SEBI had imposed a penalty on Ravi Narain, who was the predecessor of Ms Ramkrishna, and Mr Subramanian and others.
 
In its fresh notice, SEBI directed Ms Ramkrishna to pay Rs3.12 crore, which includes interest and recovery cost, within 15 days.
 
In the event of non-payment of dues, the market regulator will recover the amount by attaching and selling her moveable and immoveable property. Besides, Ms Ramkrishna faces attachment of her bank accounts and arrest.
 
Ms Ramkrishna is currently lodged in Delhi's Tihar Jail after she was arrested by the CBI on 6th March in the NSE co-location (Colo) scam case and investigation linked to other governance lapses at the bourse.
 
Last month, the regulator had issued similar demand notices to Mr Narain and Mr Subramanian.
 
In April, the Securities Appellate Tribunal (SAT) admitted Ms Ramkrishna's plea against the SEBI order in relation to governance lapses at the bourse and directed her to deposit an amount of Rs2 crore.
 
The appellate tribunal had also directed NSE to deposit more than Rs4 crore towards leave encashment and deferred bonus of Ms Ramkrishna in an escrow account as against SEBI's direction where the amount was to be parked in the investor protection Fund Trust.
 
Earlier this year, SEBI had imposed a fine of Rs3 crore on Ms Ramkrishna, following the market regulator finding that allegedly shared vital inputs about the NSE with the yogi.
 
"Information regarding organisational structure, dividend scenario, financial results, human resource policies and related issues, response to regulator, etc., were shared by her with the yogi," said the source. Between 2014 and 2016 she sent emails at [email protected]
 
On 1 April 2013, Ms Ramakrishna became the CEO and MD of NSE. She brought Ms Subramanian to NSE in 2013. 
 
Mr Subramanian was made the chief strategic advisor of NSE. He served at this post between 2013 and 2015 before being made GOO and advisor to the MD between 2015 and 2016, despite having no exposure to the capital market. 
 
Previously working as a mid-level manager in Balmer and Lawrie, he had seen his salary increased from Rs15 lakh to Rs1.68 crore annually, and then to Rs4.21 crore.
 
Mr Subramanian quit the NSE in October 2016 and Ms Ramakrishna in December 2016. CBI took up the probe in 2018.
 
Moneylife has been covering the NSE Colo scam since 2015 and the details of the Colo scam have been documented in the book Absolute Power by the editors of Moneylife Sucheta Dalal and Debashis Basu. The book was released in June 2021.
 
Comments
saharaaj
1 month ago
looks comic opera at work
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