The Securities Appellate Tribunal (SAT) has granted an interim aid to Chitra Ramkrishna, former managing director & chief govt officer of the National Stock Exchange, in a current case involving alleged governance lapses.
In February this 12 months, the Securities and Exchange Board of India (Sebi) had imposed a penalty of Rs 3 crore on Ramkrishna and in addition directed the NSE to forfeit Ramkrishna’s extra go away encashment of Rs 1.54 crore and deferred bonus of Rs 2.83 crore. Sebi had directed the NSE to retain and deposit the identical in its investor safety fund. The regulator had penalised the NSE, Ramkrishna and her predecessor Ravi Narain for governance lapses in appointing Anand Subramanian because the alternate’s group chief working officer (COO) and an advisor to Ramkrishna.
In its order posted on the SAT web site on Monday, presiding officers Tarun Agarwala and Meera Swarup directed the NSE to deposit Rs 4.73 crore in direction of go away encashment and deferred bonus of Ramakrishna in an escrow account, as a substitute of depositing it within the Investor Protection Fund Trust. Such deposit in an escrow account could be topic to the results of the attraction, they mentioned.
The SAT will think about all different arguments throughout the subsequent listening to, which is more likely to happen on June 30.
The SAT has additionally directed Ramakrishna to deposit Rs 2 crore inside six weeks. “If such an amount is deposited, the balance amount shall not be recovered during the pendency of the appeal,” the SAT mentioned whereas disposing of the keep utility.
Ramkrishna’s counsel had contested Sebi’s choice to impose the penalty beneath the Section 23A of the Securities Contracts Regulation Act, arguing that the availability got here into impact in January 2020 and couldn’t be utilized retrospectively. As a end result, imposing a penalty beneath this part was “incorrect and could not be sustained”.
Source: www.financialexpress.com”