Markets regulator Securities and Exchange Board of India (SEBI) has sanctioned the National Stock Exchange (NSE) and its former CEOs Chitra Ramkrishna and Ravi Narain, along with two other officials for failings in senior-level hiring.
In addition to this, the market regulator also banned NSE from launching any new product for a period of six months.
The market regulator found that the NSE and its senior officials breached securities contract rules related to the appointment of Anand Subramanian as group chief operating officer and adviser to the chief executive.
SEBI imposed a fine of Rs 3 crore on Chitra Ramkrishna, Rs 2 crore each on the NSE, Mr Narain and Mr Subramanian. They were ordered to pay their respective fines within 45 days.
Ravi Narain served as Managing Director and CEO of NSE from April 1994 to March 2013, while Chitra Ramkrishna served as Managing Director and CEO of NSE from April 2013 to December 2016.
VR Narasimhan, who was the NSE’s Chief Regulatory Officer and Chief Compliance Officer at the time of the standards breach, was asked to pay Rs 6 lakh.
In the order, SEBI noted that Anand Subramanian was appointed without following due process and received unequal pay of more than Rs. 4 crore per year more than most NSE seniors.
“Notice No. 6 (Anand Subramanian) was also an accomplice of the stranger who influenced the decision of Opinion No. 1 (Chitra Ramkrishna) and thus benefited himself by being renamed “Operating Officer of the group and adviser to the MD and having the compensation paid to him increases significantly each year, on the advice of the unknown of the opinion No. 1,” SEBI said in the order.