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NSE-Yogi saga: CBI grills former NSE CEO Chitra Ramkrishna

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NSE-Yogi saga: CBI grills former NSE CEO Chitra Ramkrishna

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The Central Bureau of Investigations (CBI) is questioning former National Stock Exchange chief executive officer Chitra Ramkrishna over corporate governance failures at the stock exchange from 2013 to 2016.

The Central Bureau of Investigations (CBI) is questioning former National Stock Exchange chief executive officer Chitra Ramkrishna over corporate governance failures at the NSE from 2013 to 2016. Ramkrishna quit the NSE in December 2016.

The CBI has also issued look-out circulars (LOCs) for Anand Subramanian, and Ravi Narain, former managing director and CEO at NSE. Subramanian was Chief Strategic Advisor of NSE from April 1, 2013, and was re-designated as Group Operating Officer and advisor to MD and CEO from April 01, 2015, till October 21, 2016.
Sources told CNBC-TV18 the CBI was questioning Ramkrishna in connection with new facts in an ongoing investigation.
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The income tax department had searched Ramkrishna's residence in Mumbai on Thursday. The search comes days after SEBI imposed a penalty of Rs 3 crore on Ramkrishna for sharing confidential information with an unknown person and hiring-related irregularities. 
As per the SEBI report, Ramkrishna was being guided by a Himalayan 'yogi' on Subramanian's compensation decisions and other governance issues.  
After the lapses came out in the open, the NSE, in a statement, said the SEBI order relates to certain issues at NSE from 2013 to 2016—the year Ramkrishna quit the exchange.
"In this regard, over the past few years, there have been several changes at the board and management level at NSE," the statement said. "We wish to reiterate that NSE is committed to the highest standards of governance and transparency and will extend full co-operation to the regulator for a satisfactory closure of the matter."
Former Securities and Exchange Board of India (SEBI) Chairman M Damodaran recently told CNBC-TV18 that SEBI is questioning why confidential information was passed on to outsiders.
"The NSE board should revisit the powers given to individuals. And, the SEBI needs to see if adequate checks and balances are in place and should change the public interest directors," Damodaran, who has been a pioneer in promoting corporate governance, said.
"NSE should look at all those names in the SEBI order and take them out."
Ramkrishna and Subramanian have already been restrained from associating with any market infrastructure institution or any intermediary registered with the SEBI for three years, while the same for Narain is two years.
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