Himalaya Yogi as puppet master runs India’s top exchange NSE, says SEBI

In the case of “bizarre misconduct” which was a “clear violation” of the rules, Chitra RamakrishnaThe Securities and Exchange Board of India (SEBI) said that the former chief executive officer of the National Stock Exchange (NSE) shared information, including stock market financial projections, business plans and the board’s agenda, with an alleged spiritual guru in the Himalayas.

SEBI, in an order imposing penalty on Ramakrishna, Exchange and other apex, said “sharing of financial and business plans of NSE … former officials for defaults.

Ramakrishna, who left the NSE in 2016 citing “personal reasons”, was not immediately available for comment. NSE and SEBI did not respond to requests for comment.

Allegations of corporate governance lapse have haunted NSE for many years. The exchange had planned to go public in 2017, but its listing was derailed by allegations that officials gave some high-frequency traders improper access via co-location servers, which could trigger algorithmic trading. could.

After three years of investigation, SEBI imposed a penalty of over $90 million on the exchange and barred the raising of funds from the securities markets for six months. NSE challenged the order in court and sought SEBI’s approval for the fresh IPO.

However, during that investigation, SEBI found documents showing emails to an unidentified person showing Ramakrishna, whom he said during interrogation, was a “spiritual force” whom he had sought guidance from for 20 years.

Ramakrishna in his defense told SEBI that sharing information with a person of “spiritual nature” does not compromise confidentiality or integrity.

The SEBI order, however, said it was “absurd” for Ramakrishna to argue that sharing of sensitive information such as dividend payout ratio, business plans and performance appraisal of NSE employees did not cause harm.

The SEBI probe also found that the alleged guru had no capital market experience, insufficient documentation as an advisor to Ramakrishna directly, and sufficient ground on the appointment of a mid-level executive with a higher salary than most senior NSE executives. had effect.

SEBI said Guru was running the exchange and Ramakrishna was “just a puppet in his hand”.

Emailed queries to the address given in the SEBI order were not immediately answered.

SEBI also said that NSE and its board were aware of the exchange of confidential information, but had chosen to “keep the matter a secret”.

The regulator fined NSE 20 million rupees ($270,000) and barred the exchange from launching any new products for six months.

SEBI fined Ramakrishna Rs 30 million and banned him from any exchange and SEBI-registered intermediary for three years.

Ramakrishna was among a group of executives who started the NSE in the early 1990s as a challenger to the more established BSE Limited, which was known as the Bombay Stock Exchange. He was appointed Joint Managing Director of NSE in 2009 and promoted as CEO in 2013.