New Delhi: In 2013, Chitra Ramkrishna, the former CEO and MD of the NSE, India’s largest stock exchange with a combined market capitalization of nearly $4 trillion, was guided by a yogi in the Himalayas to appoint Anand Subramanian, a relatively unknown figure in the industry, as the exchange’s chief operating officer (COO). The appointment cost NSE ₹5 crore.
The revelations are part of SEBI’s final order, which was issued on Friday following an inquiry into Ramakrishna, NSE, and four other individuals. The order was made public on Friday and is available on the website of the market regulator.
Ramkrishna addressed the unnamed yogi as “Sironmani” [the exalted one] and exchanged information with him including NSE’s five-year projections, financial statistics, dividend ratio, business goals, board meeting agenda, and even employee performance reviews.
In 2016, Ramkrishna was fired from the NSE for her role in the co-location and algo trading scams, as well as for abusing her position in the recruitment of Subramanian. Ramkrishna managed NSE with impunity, according to the investigation. No one in the company’s upper management, board of directors, or promoters — which include large government agencies and banks — ever complained to her behaviour. Instead, when Ramkrishna left NSE, she was awarded Rs 44 crore in pending des and salaries.
SEBI’s probe revealed that Ramkrishna communicated with the yogi, whom she had never met, over email, for almost 20 years and he guided her to appoint Subramanian as the second in command at NSE. “Their spiritual powers do not require them to have any such physical coordinates and would manifest at will,” Ramkrishna told SEBI. The content in the email was not denied by her as well.
Subramanian was offered the position of Chief Strategic Advisor at NSE on January 18, 2013, for a yearly compensation of 1.68 crore, compared to his last drawing salary (as per his allegation) of 15 lakh at Balmer Lawrie. Subramanian’s pay was increased by 20% to 2.01 crore in March 2014, thanks to Ramkrishna’s approval. Subramanian’s salary was increased by 15% to 2.31 crore five weeks later, with Ramkrishna describing his performance as “A+” (exceptional). His cost-to-company had risen to 5 crore by 2015, and he had been assigned a cabin next to Ramkrishna and given first-class foreign flight travel. All of this was done as per the yogi’s directions.
An email from an unnamed yogi even stated that Subramanian should be excluded from the contractual 5-day work week and instead be requested to come only for three days and work the balance of the time at his own choice.
Ramkrishna told the Yogi in her reply on December 30, 2015 read, “SOM, if I had the opportunity to be a person on Earth, Kanchan is the best fit,” the yogi wrote in an email to Ramkrishna on September 5, 2015. Ashirvadhams.” “SIRONMANI, struggle is I have always seen THEE via G, and forced myself to on my own grasp the difference. According to the SEBI investigation, ‘SOM’ stands for Ramkrishna, and ‘Kanchan’ and ‘G’ stand for Subramanian.
Dinesh Kanabar, the then-Chairman of the NSE nomination and remuneration committee, confirmed these findings. Subramanian had all of the powers of a CEO and was travelling first class, but on paper he was still a consultant. SEBI discovered a clear money-laundering plot involving NSE’s supervisor and an unnamed person.
An email dated February 18, 2015, from Ramkrishna to the unknown yogi, reads, “The role and designation of Group Chief Coordination Officer is fine and we could take that forward. I have a small submission, can we make this as Group President and Chief Coordination Officer? And over a time frame as you direct we can move the entire operations of the exchange under G and redesignate him as Chief Operating Officer? Seek Your guidance on the path forward on this Swami If this meets with your Highness’ approval, then parallelly could we coin JR (Ravi) as Group President Finance and stakeholder relations and Corporate General Counsel?”
The reply reads, “I have the following questions that will place all of you in an awkward situation. I buy your argument and analysis, interesting but have not got my answers from your own concerns. If on one hand I call JR a President who is a KMP (key management person) the other person, how can he/she be excused? Is it subjective? Competitors bring new faces much below par at intelligent levels and functional expertise, they bring all as COO and VP, we are bringing a legitimate case here which needs introspection. I have never suggested any changes in reporting of trading and other verticals, I am only trying to initiate the importance of levels within the organisation. So from a strategic perspective, can I bring the title Group COO since subsidiaries also report to him and acceptable to all. Larger the thoughts, clearer our stand, postures become easier. ASHIRVADHAMS, a revert on this is good for one and all. GNANA VEL.”
The SEBI order said, “It is not unusual that the whip of an arbitrary and dictatorial reign would cause any employee to be reluctant in filing a complaint against its top leader in fear of the repercussions. This is evident from the various anonymous complaints received by SEBI against Ramkrishna, from which these proceedings have emanated and various irregularities unearthed.”
Despite this, Ramkrishna was appointed MD and CEO of the NSE in 2013 with the support of a key politician in Delhi, according to sources. According to a forensic audit, only Ramkrishna and Subramanian were imaged/checked, while NSE disposed of their laptops as e-waste. Their personal emails were also unavailable for forensic investigation.
Ramkrishna informed SEBI that no one from the compensation committee, the NRC, or the NSE board had ever raised a question about these issues, and that no one had ever brought it to her attention. Ramkrishna’s departure was accepted owing to personal reasons by Ashok Chawla, a former bureaucrat in the Finance Ministry and then Chairman of the NSE. The board praised her exceptional contribution to the organization’s growth.
Despite this, Ramkrishna’s punishment from SEBI is insignificant. Ramkrishna has been restricted from capital markets for three years, and the NSE has been ordered to forfeit the excess leave encashment of 1.54 crore and the delayed bonus of 2.833 crores by SEBI.
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