Will extend full support to Sebi on Chitra Ramkrishna matter: NSE

NSE issued this statement in reference to a Sebi order passed on 11 February where the regulator found serious lapses in the governance and ethical conduct of the former chief executive of NSE, Chitra Ramkrishna. The regulator also imposed a penalty of ₹2 crore on NSE and barred it from launching any new products for the next 6 months, as the board of the exchange had failed in action against Ramkrishna. 

Sebi in its order had found that Ramkrishna was sharing confidential information relating to the exchange with an unknown third person and imposed a fine of Rs.3 crore on her. 

 “The sharing of financial and business plans of NSE is a glaring, if not unimaginable act that could shake the very foundations of the stock exchange,” the regulator’s order said. 

The other serious lapse was in the appointment of Anand Subramanian, as cheif operating officer without clearing it from the nomination and remuneration committee (NRC) in breach of regulatory norms. 

According to the Sebi order, this was a “glaring conspiracy of a money-making scheme” involving Ramkrishna and Subramanian, along with the unknown guru.

NSE in its statement said the said order relates to certain issues at NSE during the period 2013-2016 and are therefore almost 6-9 years old. 

“In this regard, over the last few years there have been several changes at the board and management level at NSE. NSE has operationalized the directives of SEBI on various matters over the years and has taken various measures to further strengthen the control environment including the technology architecture. 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,” the exchange said in the statement.