NSE: I-T raids on ex-MD Ramkrishna, former GOO Subramanian
Virendra Pandit
New Delhi: In what could unearth a massive financial scam and sensitive data theft between 2013 and 2016, the Income Tax Department on Thursday morning raided the Mumbai premises of Chitra Ramkrishna and Anand Subramanian, former Managing Director and Group Operative Officer (GOO) of India’s largest National Stock Exchange, respectively, as part of a tax evasion investigation against them.
The media reports, quoting official sources, said they aimed the probe at checking and gathering evidence on the charges of financial irregularities and alleged tax evasion against the two who ran the NSE unprofessionally for over three years.
Ramkrishna was the MD and CEO of the NSE from April 2013 to December 2016.
She had allegedly appointed Subramanian on the advice of her ‘spiritual’ guru, a mysterious yogi from the Himalayas. She never revealed his identity. Along with Subramanian, she took all key decisions during her tenure on her guru’s advice.
Market regulator Securities and Exchange Board of India (SEBI), which probed the matter, has charged Ramkrishna and others for alleged corporate governance lapses in Subramanian’s appointment as the Chief Strategic Advisor and his re-designation as GOO and Advisor to the MD.
The SEBI also levied a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on the NSE, Subramanian, and former NSE MD and CEO Ravi Narain, and Rs 6 lakh on V R Narasimhan, the Chief Regulatory Officer, and Compliance Officer.
The regulator’s order revealed that Ramkrishna shared certain internal confidential information, including financial and business plans of NSE, dividend scenario, and financial results, with the yogi and even consulted him over the performance appraisals of the NSE’s employees. It noted that she refused to reveal the identity of the unknown guru and claimed that he was a ‘spiritual force’.
The SEBI has restrained the two main accused, Ramkrishna and Subramanian, from associating with any market infrastructure institution or any intermediary registered with the regulator for three years, while it has similarly restrained Narain for two years.
Besides, the regulator directed the NSE to forfeit the excess leave encashment of Rs 1.54 crore and the deferred bonus of Rs 2.83 crore payable to Ramkrishna.
In addition, it barred the Exchange from launching any new product for six months.
