National Stock Exchange: MoF officials meet NSE chief, discuss Sebi order on lapses, Ramkrishna’s role

In its final order on February 11, the Securities and Exchange Board of India (SEBI) held that NSE’s former MD and CEO Chitra Ramkrishna shared “confidential information” with a spiritual guru (also referred to as Himalayan yogi) and sought his advice on crucial decisions.

The ministry officials asked Limaye to explain the measures that the stock exchange took when it got to know about the email exchanges with a “yogi” as well as possible data leaks, while probing the co-location case years back, two people aware of the matter told ET.

Limaye was also asked about some of the mid-to-senior level appointments at the exchange during Ramkrishna’s term. NSE declined to comment on ET’s queries.

The ministry wanted to know why Ramkrishna and other senior officials was given an easy exit without making her accountable for her actions, one of the persons cited above said.

Ramkrishna, stepped down in December 2016 citing “personal reasons”. Limaye was appointed NSE chief in 2017.

While probing the NSE colocation case, SEBI found Ramkrishna’s emails to an unknown person, who she said during questioning was a “spiritual force” she had sought guidance from for 20 years.

In its Friday order, SEBI alleged that Ramkrishna had shared information including the bourse’s financial projections, business plans and board agenda with the so-called spiritual guru.

“The sharing of financial and business plans of NSE… is a glaring, if not unimaginable, act that could shake the very foundations of the stock exchange,” SEBI had said in an order.

“It is pertinent to understand whether the NSE has carried out any risk assessment post knowledge of the matter. Being a Market Infrastructure Institution (MII), it is important to assess the impact of the leaks which were shared continuously with the unknown person,” said one official aware of the issue.

The order also stated that it was absurd for Ramkrishna to contend that sharing sensitive information such as dividend pay-out ratios, business plans and the performance appraisals of NSE employees did not cause any harm.

The SEBI probe also found the purported guru had substantial influence over the appointment of a mid-level executive who lacked capital market experience.

In the colocation matter, SEBI in May 2019, fined the exchange 625 crore, and barred it from raising money in securities markets for six months.

Allegations of corporate governance lapses have been plaguing NSE for several years. The probe had even derailed NSE’s plan to go public in 2017.