Bombay (Maharashtra):
Market regulator Securities and Exchange Board of India (SEBI) has sanctioned the National Stock Exchange (NSE) and its former CEOs Chitra Ramkrishna and Ravi Narain, as well as two other officials, for missing out on senior-level staff.
In addition, the market regulator has banned NSE from launching a new product for a period of six months.
The market regulator found that the NSE and its top officials have violated securities contract rules regarding the appointment of Anand Subramanian as the group’s operational officer and advisor to the chief executive.
SEBI has imposed a fine of Rs 3 crore on Chitra Ramkrishna, Rs 2 crore each on the NSE Mr Narain and Mr Subramanian. They have been ordered to pay their respective fines within 45 days.
Ravi Narain served as the general manager and CEO of the NSE from April 1994 to March 2013, while Chitra Ramkrishna served as the general manager and CEO of the NSE from April 2013 to December 2016.
VR Narasimhan, who was the Chief Regulatory Officer and Chief Compliance Officer of the NSE at the time of the breach of the standards, has been ordered to pay Rs 6 lakh.
In the order, SEBI noted that Anand Subramanian was appointed without following proper procedure and that he was given an unequal pay of more than Rs. 4 crore per year higher than most seniors at NSE.
“Noticee no.6 (Anand Subramanian) was also an accomplice with the unknown person who influenced the decision of Noticee no.1 (Chitra Ramkrishna) and thereby he benefited again by being re-designated as ‘group operating officer and advisor to MD and having the fee paid to him is significantly increased every year, on the advice of the unknown person to Noticee No. 1,” SEBI said in the warrant.