Who is Chitra Ramakrishna?
The former Managing Director and Chief Executive Officer of the National Stock Exchange (NSE), Chitra Ramkrishna, has seen an impressive career, though the former head of the country’s biggest stock exchange touched down in scandal, following the Securities and Exchange Board of India’s SEBI shocking revelations. Ramakrishna was the first woman to be assigned as the head of an Indian Stock Exchange. Somewhere at the age of 21, she earned her chartered accounting and began working for the Industrial Development Bank of India, in the role of assistant administrator of capital markets in 1985.
Ramkrishna was engaged in the design of the Securities and Exchange Board of India’s (SEBI) regulatory regime in the 1980s. Ever since NSE’s creation in 1991, Ramkrishna has been an essential part of the corporation. She was looked up to, for establishing a pan-India VSAT connection, and in addition, developing the infrastructural and legal outlay for India’s first depositor, moreover, promoting screen-based trading. The NSE established a number of products during her tenure, including futures contracts, exchange-traded funds, and global indexes like the S&P 500. In 2013, Ramkrishna was titled as “Forbes Women Leader of the Year” and “the most powerful woman in India’s securities market” according to Fortune India.
Chitra Ramkrishna, the Former NSE CEO, arrested by CBI in co-location scam
Chitra Ramkrishna, the former managing director (MD) and chief executive officer (CEO) of the National Stock Exchange (NSE), was arrested by the Central Bureau of Investigation (CBI) on charges of serious faults at India’s largest stock exchange, together with breaching confidentiality with a person she called a “Himalayan yogi.” This Monday morning, the CBI will present her at the area’s special court of CBI cases in Delhi. This would be about necessitating for her prison detention in a case documented in May 2018, to scrutinize the suspected exploitation of the Exchange’s system architecture to put forward a stockbroker access to market data over others.
The detention took place only one day after a special court in Delhi refused her re-arrest bail application and criticized the CBI for the delay and being “lackadaisical” in the 4-year-long investigation into her case. The news comes only days after CBI detained former NSE group operating officer (GOO), Anand Subramanian, in the very same case. His detention expired on Sunday, so the CBI will present him in a special court to acquire a second remand for him.
The CBI disclosed on February 25th that Anand Subramanian, all around Ms Ramkrishna’s term, was the unexplained ‘Himalayan yogi’ who reportedly impacted Ms Ramkrishna’s actions. According to a study by SEBI, his controversial hiring was through the opinions taken by Chitra Ramkrishna, in the persuasion of the so-called yogi. Ms Ramkrishna, Mr Subramanian, and preceeding NSE MD Ravi Narain were all fined by SEBI for a variety of infractions, involving inconsistencies in Mr Subramanian’s hiring as a Chief Strategic Advisor and his following re-designation as the GOO and Advisor to the then NSE MD.
The CBI has filed a case opposed to Delhi-based OPG Securities and others, which include unidentified SEBI and NSE employees. It has been looking into the ‘colocation fraud,’ in which the company’s senior executives took advantage of weaknesses in the Exchange’s server architecture and colluded with NSE data centre employees, to gain privileged access to the market feed. The NSE and its heads too, were aware of the discussions with the problematic consultant, according to the SEBI ruling, but preferred to “keep the situation under wraps.”
Mr. Subramanian was reportedly detained by the CBI because he failed to comply with the investigation and refused to provide the true identity of the ‘Himalayan yogi’ with whom he and Ms Ramkrishna discussed internal Exchange secret material from 2014 to 2016. The CBI concluded that he had reportedly created the email address email@example.com, which he used to correspond with Chitra Ramkrishna while posing as the Himalayan Yogi.
In 2013, Chitra Ramkrishna, the former CEO and MD of the NSE, with a combined market capitalization of nearly $4 trillion, was steered by a yogi in the Himalayas to assign Anand Subramanian, a relatively mysterious individual in the sector, as the exchange’s chief operating officer (COO). NSE 5 crore was spent on recruitment. The disclosures come as part of SEBI’s final decision, following an investigation involving Ramakrishna, NSE, and four other people. The order has been made public and may be found on the exchange regulator’s website.
Ramkrishna addressed the unnamed yogi by “Sironmani” [the elevated one] and exchanged ideas and information with him including NSE’s five-year predictions, monetary statistics, dividend ratio, strategic objectives, board meeting ideology, and perhaps even staff performance reviews.
In 2016, Ramkrishna’s role was concluded from the NSE for her participation in the co-location moreover trading scams, further for abusing her position in the recruitment of Subramanian. Ramkrishna operated NSE with liberty, according to the investigation. No one in senior authorities, the heads or board of directors, or the promoters, including large government institutions and banks, ever complained about her behavior.
Instead, after Ramkrishna left NSE, she was paid Rs. 44 crore in overdue dues and salaries. Ramkrishna interacted with the yogi, whom she had never even seen, by email for about 20 years, according to SEBI‘s investigation, and he gave advices to her to nominate Subramanian for NSE’s second in command. She did not deny the essence of the email.
Ramkrishna told SEBI that no one from the remuneration force, the NRC, or the NSE panel had ever voiced a question about these concerns and that no one had ever called it to her notice. Ramkrishna’s departure was approved owing to personal reasons by Ashok Chawla, a former official in the Finance Ministry and then Chairman of the NSE. The heads applauded her commendable role in the firm’s growth.