Chitra Ramkrishna case: I-T conducts searches at premises linked to NSE's ex-MD

The Income Tax Department is conducting searches at premises linked to former MD of National Stock Exchange (NSE), Chitra Ramkrishna, according to sources. Searches are also underway at then Operating Officer/Chief Strategy Officer Anand Subramanian’s premises.

This comes after the NSE issued a statement on Wednesday stating that it is committed to the highest level of governance and will extend full support to Securities and Exchange Board of India (SEBI). The SEBI had found serious lapses in the governance and ethical conduct of Ramkrishna. 

NSE in its statement had said, “The 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. SEBI has also instituted various changes in the governance structure of market infrastructure institutions (MIIs) including board committee structures and oversight, tenor of management, accountability for lapses at MIIs etc. which have strengthened the control environment of MIIs. SEBI has been closely monitoring and supervising the operations of NSE and other MIIs.”

Ramkrishna is under investigation for making alleged illegal financial gains by way of sharing internal confidential information of NSE to an unknown person. Recently, SEBI penalised her of Rs 3 crore for irregularities in the appointment of Anand Subramanian as Chief Strategy Officer. Ramakrishna reportedly had clarified saying she was being guided by a ‘Yogi’ who lives in the Himalayas. 

The case

Ramkrishna shared confidential information with a yogi and sought his advice on crucial decisions, the SEBI probe found. She shared the bourse's financial projections, business plans and board agenda with a purported spiritual guru in the Himalayas. 

She had emailed an unknown person who she called a "spiritual force" she had sought guidance from for 20 years, during the questioning. 

She, however, defended herself and said that the sharing of information with the person who was ‘spiritual in nature’ and that it did not compromise confidentiality or integrity. SEBI called her arguments ‘absurd’ and questioned how sharing information of sensitive nature such as dividend pay-out ratios, business plans and the performance appraisals of NSE employees did not cause any harm. 

SEBI also found that the purported guru had substantial influence over the appointment of a mid-level executive with no capital market experience as an adviser to Ramkrishna, with inadequate documentation and a salary higher than most NSE officials.

Ramkrishna had quit NSE in 2016 citing ‘personal reasons’. 

(With inputs from Munish Pandey)

Also read: An appointment that cost NSE and its former CEOs dearly

Also read: Chitra Ramkrishna case: A SEBI order that hides more than it reveals