SEBI barred NSE from launching any new product for a period of six months
Mumbai (Maharashtra):
Markets regulator Securities and Exchange Board of India (SEBI) has penalized the National Stock Exchange (NSE) and its former CEOs Chitra Ramakrishna and Ravi Narain along with two other executives for lapse in recruitment at senior level.
Further, the market regulator has barred NSE from launching any new product for a period of six months.
The market regulator observed that the NSE and its top executives violated securities contract norms relating to the appointment of Anand Subramaniam as group operating officer and advisor to the managing director.
SEBI has imposed a penalty of Rs 3 crore on Chitra Ramakrishna, Rs 2 crore on NSE, Rs. Narayana and Mr. Subramaniam. They have been directed to pay their respective penalties within a period of 45 days.
Ravi Narayan was the Managing Director and CEO of NSE from April 1994 to March 2013, while Chitra Ramakrishna was the Managing Director and CEO of NSE from April 2013 to December 2016.
NSE Chief Regulatory Officer and Chief Compliance Officer VR Narasimhan has been directed to pay Rs 6 lakh at the time of violation of norms.
In the order, SEBI noted that Anand Subramaniam was appointed without following due process and was paid unequal pay of more than Rs. 4 crores per annum more than most seniors of NSE.
“Notice No. 6 (Anand Subramaniam) was also an accomplice with unidentified person, who influenced the decision of Noticee No. 1 (Chitra Ramakrishna) and thereby designated himself as ‘Group Operations Officer and Advisor to the MD’ and himself On the advice of the unidentified person to the Noticee No. 1, the compensation being paid to him increases substantially every year,” SEBI said in the order.
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