25 May , 2022 By : monika singh
The Securities and Exchange Board of India (Sebi) on Tuesday issued a demand notice of Rs 3.12 crore to Chitra Ramkrishna, former managing director and chief executive officer of the National Stock Exchange (NSE), over governance issues at the exchange. The notice came in after Ramkrishna failed to pay the fine imposed on her by the markets regulator.
“A sum of Rs 3,12,01,000/- (Rupees Three Crore Twelve Lakh One Thousand only) along with further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery of the said sum is due to Sebi from you (Ramkrishna),” Sebi said on Tuesday.
The regulator has asked Ramkrishna to pay the amount within 15 days of the notice. In case of non-payment, the regulator has warned of arrest and attachment of assets and bank accounts of the former NSE chief. On February 11, Sebi had slapped a fine of Rs 3 crore on Ramkrishna for matters including the appointment of Anand Subramanian as the group operating officer (GOO), and sharing of sensitive information about the exchange with an unknown person.
Sebi further stated that Ramkrishna was no longer competent to mortgage, charge, lease or otherwise deal with any property belonging to her, except with the permission of the recovery officer, and any such transfer will be deemed void under the rules of the regulator.
The former NSE chief is currently in Delhi’s Tihar Jail after the Central Bureau of Investigation (CBI) arrested her on March 6 in the NSE co-location case, for other investigations related to the governance lapses at the exchange. In the co-location case, CBI last week had carried out search operations on the premises of more than 10 brokers across cities.
Last month, similar notices of demand were sent to Ravi Narain, former CEO at NSE, and Subramanian. However, in April, the Securities Appellate Tribunal (SAT) granted an interim relief to Ramkrishna and asked her to deposit only Rs 2 crore within six weeks. “If such an amount is deposited, the balance amount shall not be recovered during the pendency of the appeal,” said SAT members. It further ordered NSE to deposit Rs 4.73 crore towards leave encashment and deferred bonus of Ramkrishna in an escrow account, and not in the Investor Protection Fund Trust.
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