Himalayan Yogi influenced the decisions of former NSE MD Chitra Ramakrishna: Sebi order

Furthermore, Ramakrishna gave Subramaniam a “persistent, arbitrary and disproportionate” increase in compensation when there was no evidence of any performance appraisal for him nor to give such a high salary increase to satisfy the rating of A given to him. There was no evidence for

In addition, Ramakrishna had shared some internal confidential information with Yogi including NSE’s financial and business plans, dividend outlook, financial results and even consulted him on the performance appraisal of employees of the exchange.

This was disclosed by SEBI in its final order passed on Friday against Ramakrishna and others. Ramakrishna, who was the Managing Director and CEO of NSE from April 2013 to December 2016, referred to Yogi as “Sironmani” and Yogi is a spiritual force who has been guiding him on personal and business matters for the past 20 years.

According to Ramakrishna the unknown person or yogi was a “spiritual force that could manifest anywhere at will and had no physical or local coordination and lived largely within the range of the Himalayas”.

SEBI, in its 190-page order, found that Yogi directed them to appoint Subramaniam, who was entrusted with substantial management power similar to the powers given to the MD and CEO.

Subramaniam was offered to join NSE in the role of Chief Strategic Advisor from April 2013 for annual compensation 1.68 crores. Prior to this, he had worked at Balmer & Lowry in medium level management with zero risk in capital markets and was drawing less than that. 15 lakh per year till March 2013.

increased from their annual compensation 1.68 crore 2.01 crore in April 2014 and again their compensation increased 3.33 crore in April 2015. In addition, he was re-designated as Group Operations Officer (GOO) and advisor to MD. Also, in April 2016, his compensation increased 4.21 crores.

As per the SEBI order, there was no evidence on file of his performance appraisal though he was consistently rated as the top performer. However, the increase in compensation to Subramaniam was also directed by Yogi.

“There appears to be an apparent conspiracy of a money-making scheme involving an unknown person (Yogi) with notices No. 1 (Ramakrishna) and 6 (Subramaniam) by which notice No. 1 will increase the compensation given to notice No. 6 and notice No. 6 shall then pay such enhanced compensation to the unidentified person,” SEBI said.

In addition, Yogi advised Ramakrishna to revise the contract with Subramaniam on paper for five days a week only for emoluments. Sebi said that despite being aware of the irregularities in Subramaniam’s appointment, NSE and other officials including former MD and CEO Ravi Narayan did not register the matter in the minutes of the board meeting in the name of confidentiality and sensitive information.

“From the record of events of appointment of Notice No. 6 and substantial increase in their emoluments every year and delegation of powers similar to MD and CEO as well as email exchange between Notice No. 1 with unknown person where Notice No. 6 was also the recipient “It is clear that a conspiracy has been hatched for the appointment and elevation of Notice No. 6 in NSE,” SEBI said.

SEBI imposed fine in case of lapse in governance while appointing Subramaniam 3 crore on Ramakrishna, 2 crore each on NSE, Subramaniam and Narayan, and 6 lakh on VR Narasimhan, who was the Chief Regulatory Officer and Compliance Officer.

Further, Ramakrishna and Subramaniam have been barred from associating with any market infrastructure institution or any intermediary registered with SEBI for a period of three years, while for Narayan it is two years.

Also, SEBI has directed NSE to forfeit the excess holiday encashment 1.54 crore and deferred bonus 2.83 crores of Ramakrishna, which the exchange retained and deposited in its Investor Protection Fund Trust within six days. Further, SEBI has barred NSE from launching any new product for a period of six months.