SEBI: Markets regulator SEBI has constituted a committee to identify the lapses in the tenure of former Chief Executive of National Stock Exchange Chitra Ramakrishna. According to sources familiar with the development, the committee will suggest ways to strengthen such important institutions.
Sources said, this committee will assess the lapses in the internal control systems and compliance procedures of the country’s largest stock exchange.
Committee will identify the flaws
The committee constituted by the market regulator can identify the reasons for the lapses at various levels including the board, the regulator and the government. At the same time, it will suggest measures for prevention and strict control, so that these issues do not arise again.
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The committee will be headed by G Mahalingam, former whole-time director of SEBI and chairperson of the advisory committee of SEBI Investor Protection and Education Fund. Mahalingam, former Regional Director of RBI, is also a visiting faculty member of the National Institute of Securities Markets, an educational initiative of SEBI.
These allegations were against the officials of NSE
SEBI had accused Ramakrishna and other NSE officials of lapses in governance and violation of contract rules in appointments. This primarily concerns Anand Subramanian, who was first appointed as Chief Strategic Advisor and later as Group Operating Officer and Advisor to MD.
collocation case
Co-location case: The market regulator also said that Ramakrishna had shared confidential internal information, including financial and business plans of NSE, with a mysterious “yogi of the Himalayas”. Ramakrishna used to consult with him about the performance appraisal of the employees. Ramakrishna had revealed that she used to consult a “yogi of the Himalayas” to take important business decisions.
Ramakrishna in judicial custody
Ramakrishna is currently in judicial custody in this case. Coming to the colocation case, it is a matter of benefiting selected stock brokers by giving information about the servers of NSE on priority basis. This case is from 2010 to 2015.
NSE is the world’s largest exchange in terms of derivatives trading and its average daily turnover last year was Rs 2 lakh crore. It is the fourth largest exchange in the world in terms of the number of trades in the Cash Equities segment.