SEBI has imposed a fine of ₹3 crore on Ms. Ramakrishna, ₹2 crore on NSE, Shri Narayan and Shri Subramaniam, and ₹6 lakh on Chief Regulatory Officer and Chief Compliance Officer Narasimhan.
SEBI on February 11 Punished NSE and its former MDs and CEOs, Chitra Ramakrishna and Ravi Narayanand others for breach of securities contract rules in a matter relating to the appointment of Anand Subramaniam as Group Operating Officer and advisor to the MD.
The regulator has slapped ₹3 crore on Ms. Ramakrishna, ₹2 crore on NSE, Shri Narayan and Shri Subramaniam, and Chief Regulatory Officer and Chief Compliance Officer V.R. Narasimhan has been fined ₹6 lakh.
Further, the Securities and Exchange Board of India (SEBI) has barred NSE from launching any new product for a period of six months.
Further, Ms. Ramakrishna and Mr. 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 the NSE to forfeit Ms. Ramakrishna’s additional holiday encashment of ₹1.54 crore and deferred bonus of ₹2.83 crore, which the exchange had kept with itself and the same within six days to its investor protection. The fund was deposited in the trust. ,
SEBI observed that Mr. Subramaniam was re-designated as ‘Group Steering Officer and Advisor to MD’ by Ms. Ramakrishna with effect from April 2015.
Further, they appointed Mr. Subramaniam as ‘Group Operations Officer and Advisor to MD’, to avoid making him key management personnel and still give him broad executive powers, SEBI said in its 190-page said in the order.
In addition, he constantly shared “internal confidential information of NSE with any unidentified person”.
“Notice No. 6 [Subramanian] He was also an aide of unknown person who influenced the decision of the notice number. 1 [Ms. Ramkrishna] And thereby benefiting himself by being re-designated as ‘Group Steering Officer & Advisor to MD’ and is being paid compensation every year at the notice number on the advice of unknown person. 1, SEBI said.
No. 6 from the record of the events of appointment of noticeee and substantial increase in his emoluments every year and delegation of powers similar to that of MD and CEO, with e-mail exchange between the noticei no. 1 with the unidentified person where the noticeee no. 6 was also the recipient, it is clear that notice no. 6 in NSE,” it added.
The regulator said that despite being aware of the irregularities in the appointment of Mr. Subramaniam, Mr. Narayan and the NSE did not register a case in the minutes of the board meeting in the name of confidentiality and sensitive information.
Ms. Ramakrishna was the MD and CEO of NSE from April 2013 to December 2016, Shree Narayan was the MD and CEO of the Exchange from April 1994 to March 2013. Thereafter, he was appointed as the Vice President in the non-executive category. Board of NSE from April 2013 and remained so till June 2017.
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