Ex-NSE boss Chitra gets one more chance

New Delhi": The Securities Appellate Tribunal (SAT) has given more time to former NSE chief Chitra Ramkrishna for depositing an amount of Rs 2 crore in a case pertaining to governance lapses at the bourse.

"The period to deposit the money by our order dated 11th April, 2022 is extended for a further period of four weeks," the appellate tribunal said in an order passed on May 31. In its order on April 11, SAT admitted Ramkrishna's plea in the case and had directed her to deposit an amount of Rs 2 crore within six weeks. It had said that if such an amount was deposited, the balance amount will not be recovered during the pendency of the appeal. In addition, SAT had asked the National Stock Exchange of India (NSE) to deposit more than Rs 4 crore towards leave encashment and deferred bonus of Ramkrishna in an escrow account as against Sebi's direction where the amount was to be parked in the Investor Protection Fund Trust. Passing a fresh order on May 31, SAT said "no ground has been made out for modifying our order dated 11th April, 2022. The application is rejected".

In its earlier order, the counsels of Ramkrishna urged that the impugned order should be stayed during the pendency of the appeal while SAT had said all these questions would be considered at the time of hearing of the appeal. Ramkrishna approached SAT after Sebi, through an order dated February 11, slapped a penalty of Rs 3 crore on her for alleged governance lapses in a case related to the appointment of Anand Subramanian as the Group Operating Officer and Advisor when she was at the helm of NSE as its Managing Director and Chief Executive Officer.

Besides, the watchdog had asked NSE to forfeit the excess leave encashment of Rs 1.54 crore and the deferred bonus of Rs 2.83 crore of Ramkrishna, and the amount was to be deposited in the Investor Protection Fund Trust. Apart from penalising Ramkrishna in the governance lapses case, Sebi had imposed penalties on Ravi Narain, who was the predecessor of Ramkrishna, and others. Further, Ramkrishna has been restrained from associating with any market infrastructure institution or any intermediary registered with Sebi for a period of three years while the same for Narain is two years.

In its 190-page order, passed on February 11, Sebi found that Ramkrishna was steered by a yogi dwelling in the Himalayan ranges in the appointment of Subramanian. Ramkrishna referred the yogi as 'Sironmani' and according to her, yogi is a spiritual force who has been guiding her for the past 20 years on personal and professional matters. Besides, Ramkrishna had shared certain internal confidential information, including financial and business plans of NSE, dividend scenario, financial results with the yogi and even consulted him over the performance appraisals of the exchange's employees.