SEBI issues ₹3.12 crore demand notice to NSE's ex-boss Chitra Ramkrishna

The notice came after Ms. Ramkrishna failed to pay the fine imposed on her by the SEBI

Chitra Ramkrishna, former managing director and CEO of National Stock Exchange of India (NSE). File | Photo Credit: Shashi Ashiwal

Capital markets regulator Securities and Exchange Board of India (SEBI) on Tuesday sent a notice to NSE's former chief Chitra Ramkrishna asking her to pay ₹3.12 crore in a case related to governance lapses at the stock exchange, and warned of arrest and attachment of assets and bank accounts if she fails to make the payment within 15 days.

The notice came after Ms. Ramkrishna failed to pay the fine imposed on her by the SEBI.

In an order dated February 11, SEBI had slapped a penalty of ₹3 crore on Ramkrishna 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, as well as for sharing confidential information of the company with an unidentified person.

Apart from penalising Ms. Ramkrishna, SEBI had imposed a penalty on Ravi Narain, who was the predecessor of Ms. Ramkrishna, and Mr. Subramanian and others.

In its fresh notice, SEBI directed Ramkrishna to pay ₹3.12 crore, which includes interest and recovery cost, within 15 days.

In the event of non-payment of dues, the markets regulator will recover the amount by attaching and selling her moveable and immoveable property. Besides, Ms. Ramkrishna faces attachment of her bank accounts and arrest.

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Ms. Ramkrishna is currently lodged in Delhi's Tihar Jail after she was arrested by the CBI on March 6 in the NSE co-location scam case and investigation linked to other governance lapses at the bourse.

Last month, the regulator issued similar demand notices to Mr. Narain and Mr. Subramanian.

In April, the Securities Appellate Tribunal (SAT) admitted Ramkrishna's plea against the SEBI order in relation to governance lapses at the bourse and directed her to deposit an amount of ₹2 crore.

The appellate tribunal had also directed NSE to deposit more than ₹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.