Article by Sneha Singh, image courtesy: Business Today, The Hindu & Livemint
SEBI, Securities and Exchange Board of India, has penalized former National Stock Exchange (NSE) Chief Chitra Ramkrishna, for sharing confidential details regarding the stock exchange with an ‘unknown person’.
The regulator stressed that Ramkrishna was sharing some of the crucial and confidential information like NSE’s projections for the coming five years agenda with this “anonymous person.”
Ramkrishna, in her submission, told Sebi, the unknown person was a ‘Yogi’ or a ‘Siddha Purusha’ According to her, the anonymous person is primarily dwelling in the Himalayas, as per the regulator’s 190-page long order.
SEBI penalized Ramkrishna, NSE, former CEO Ravi Narain, and two more individuals for allegedly disobeying securities contract rules. These regulations were linked to the appointment of Anand Subramanian as an adviser to the managing director and as a group operating officer.
Ananta Barua, SEBI’s full time member, stated in the order –
“I note that Noticee no. 1 (Ramkrishna) has submitted that for the past 20 years, she has sought guidance from the unknown person on many personal and professional matters and therefore.”
NSE indicts Anand Subramanian of playing with spiritual sentiments of Ramkrishna for his self-centered desires.
SEBI said that the ‘Siddha Purusha’ has urged her to redraft the contract with Anand Subramanian to 5 days in a week exclusively on paper for the sake of compensations.
As per an E&Y report and a report of practitioners working in human psychology proposed by NSE, the regulator stated that Subramanian had heavily influenced Ramkrishna by creating a false identity before her.
However, SEBI is not in favor of claims made by NSE that the ‘Siddha Purusha’ and Subramanian are the same identities.
The SEBI order also adds that Ravi Narain was also aware of the anomalies in the designation of Subramanian as Group Operating Officer without being designated as KMP and mails of sharing secret information by Ramakrishna with an anonymous individual.
SEBI has levied a penalty of Rs 3 crore on Chitra Ramakrishna. Also, Ramakrishna, Narain, and Subramanian banned her from corresponding with any market infrastructure institution or any SEBI-registered intermediary for three years. Narain, NSE, and Subramanian have been fined Rs 2 crore each.
Additionally, NSE has been prohibited from launching any new product in the market for the following six months.
NSE has now issued a statement and has promised to co-operate with Securities and Exchange Board of India
Sharing of financial and business plan of NSE is glaring, if not unimaginable act that could shake the foundation of stock exchangeNational Stock Exchange