Governance lapses occurred in India‘s top bourse. Federal police of India arrested the former chief executive at the National Stock Exchange (NSE). The Central Bureau of investigation does not expose further details on the arrest of Chitra Ramkrishna in New Delhi on March 06, 2022.
Recently, the federal police officials investigated former NSE CEO, Chitra Ramkrishna in Mumbai.
Then the officers continue to further question Ramkhrisna’s adviser Anand Subramanian in the southern city of Chennai. Both Ramkrishna and Subramanian do not give any comment. NSE and SEBI also do not give immediate response towards the situation.
The investigation reported that Ramkrishna had received advice from an outsider called Himalayan yogi. After the investigation, the market regulator penalized her. It has been the bigger step done by CBI to further investigate the same issue in 2018. There has been unfair access for some high frequency traders to access algorithmic trading speed.
It has tainted NSE’s reputation, because further scrutiny risks mean giving its delayed listing. Ramkrishna said that she is merely a puppet of someone who described himself as yogi. The federal finance minister argued that the government was probing whether SEBI has proportionally acted in NSE matters.
NSE itself believed that the institution commits the highest standards of governance including transparency. The scrutiny weighs more burden to its struggling for its IPO for years. The institution has long suffered from either governance lapses or technical glitches. Apparently, NSE denies the allegation so far. Former SEBI official claimed that it will surely bring down the image of NSE, regarding to Ramkrishna’s case.
Started in 1994 and joined pioneer in 1990s Ramkrishna has contributed incredible achievement throughout NSE’s journey. Thanks to Ramkrishna, it has become the largest derivatives exchange with a high volume of traded contracts. Therefore, the allegation and arrest of Ramkrishna shocked the company’s way too much this time.
