The Securities and Exchange Board of India has imposed penalties on National Stock Exchange (NSE), Chitra Ramakrishna, Anand Subramanian and others in connection with the NSE co-location case. SEBI imposed a penalty of Rs 7 crore on NSE, Rs 5 crore on Chitra Ramakrishna, Rs 5 crore on Anand Subramanian, and Rs 5 crore on Ravi Varanasi.
The board has also imposed a penalty of Rs 1 crore each on Nagendra Kumar SRVS, Deviprasad Singh, and MR Shashibhushan, Rs 1.10 crore on Prashanth D'souza, Om Prakash Gupta, Sonali Gupta, Rahul Gupta, Rs 3 crore on Sampark Infotainment Pvt. Ltd, Rs 5 crore on GKN Securities, and Rs 6 crore on Way2Wealth Brokers Private Ltd. Rs 10 lakh penalty has been imposed on Netaji Patil, Rima Srivastava, Parshant Mittal, Mohit Mutreja.
SEBI has asked the notices to pay the total amount of penalty within 45 days of the receipt of the order though demand draft or online.
“Having regard to the factors listed in Section 15J of the SEBI Act and Section 23 J of the SCRA, it is now established that W2W and GKN, in collusion with the employees of NSE and Sampark made significant profit due to unfair latency advantage available with them,” stated the SEBI order.
Ramkrishna had allegedly shared sensitive information about the exchange with a ‘yogi who lives in the Himalayas’. The CBI had in a statement mentioned that the alleged unfair practices occurred between 2010 and 2015.
An earlier SEBI order stated that it came across certain documentary evidence that showed that Ramkrishna had shared internal information including organisational structure, dividend scenario, financial results, human resources policy, and related issues, response to regulator, etc of NSE with an ‘unknown person’ through emails in the period from 2014 to 2016.
The market regulator had charged Ramkrishna and others with alleged governance lapses in the appointment of Subramanian as the chief strategic advisor and his re-designation as group operating officer and adviser to the MD.
Also read: NSE co-location case: CBI files chargesheet against Chitra Ramkrishna, Anand Subramanian
Also read: NSE co-location case: CBI court defers bail applications of Ramkrishna, Subramanian