The Securities and Exchange Board of India (SEBI) has taken action against the National Stock Exchange (NSE) and its former CEOs Chitra Ramakrishna and Ravi Narayan, along with two other officials. Action has been taken against them for lapse in recruitment at senior level. The market regulator has observed that the NSE and its top executives have 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 fine of Rs 3 crore on Chitra Ramakrishna, Rs 2 crore each on NSE, Ravi Narayan and Anand Subramaniam. They have also been directed to pay their respective fines within a period of 45 days. Let us inform that Ravi Narayan was MD and CEO of National Stock Exchange from April 1994 to March 2013, while Chitra Ramakrishna was MD 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. Further, the market regulator has barred the National Stock Exchange from launching any new products for a period of six months.
In the order, market regulator SEBI noted that Anand Subramaniam was appointed without following due process and was paid a disproportionate salary of over Rs 4 crore per annum in comparison to most senior NSE executives.
The order said Anand Subramaniam was also an accomplice with an unidentified person who influenced the decision of Chitra Ramakrishna. Thus Anand Subramaniam reappeared as Group Operations Officer and Advisor to the MD. He was being paid more every year on the advice of an unknown person.