SEBI fines NSE, Ramakrishna, Narayan among others in key appointment case

The regulator has imposed a fine 3 crore on Ramakrishna, 2 crore each on NSE, Narayan and Subramaniam and 6 lakh on VR Narasimhan, who was the Chief Regulatory Officer and Chief Compliance Officer.

Further, the Securities and Exchange Board of India (SEBI) has barred NSE from launching any new product for a period of six months.

Further, Ramakrishna and Subramaniam have been barred from associating with any market infrastructure institution or any intermediary registered with SEBI for a period of three years, while for Narayan it is two years.

Also, SEBI has directed NSE to forfeit the excess holiday encashment 1.54 crore and deferred bonus 2.83 crores of Ramakrishna, which the exchange retained and deposited in its Investor Protection Fund Trust within six days.

SEBI found that Subramaniam was re-designated by Ramakrishna as ‘Group Operating Officer and Advisor to MD’ with effect from April 2015.

Further, they appointed Subramaniam as ‘Group Operations Officer and Advisor to MD’ to avoid making him the key management personnel and still give him broad executive powers, SEBI said in its 190-page order. said in.

In addition, he constantly shared “internal confidential information of NSE with an unidentified person”.

“Notice No. 6 (Subramaniam) was also an accomplice with unidentified person, who influenced the decision of Noticee No. 1 (Ramakrishna) and thereby benefitted himself by being re-designated as ‘Group Steering Officer and Advisor to MD’ On the advice of an unidentified person to Notice No. 1, the compensation paid to him increases substantially every year,” SEBI said.

“From the record of the events of the appointment of Notice No. 6 and a substantial increase in their emoluments every year and delegation of powers similar to that of MD and CEO along with e-mail exchanges between Notice No. 1 with unknown person where the notice No. 6 was also the recipient, it is evident that a conspiracy has been hatched for the appointment and elevation of Noticee No. 6 in NSE,” it added.

The regulator said despite being aware of the irregularities in Subramaniam’s appointment, Narayan and NSE did not register a case in the minutes of the board meeting in the name of confidentiality and sensitive information.

Ramakrishna was the MD and CEO of NSE from April 2013 to December 2016, Narayan was the MD and CEO of the exchange from April 1994 to March 2013. Thereafter, he was appointed as the Vice-Chairman in the Non-Executive Category on the Board of NSE. It remained so till April 2013 and June 2017. PTI SP HRS Hours