Income Tax Raid At Former National Stock Exchange Chief Chitra Ramkrishna's Home

The income tax department conducted searches on the properties of former chief executive of the National Stock Exchange Chitra Ramkrishna on February 17. This is the second probe on her by the department. The raid comes based on allegations that Ramkrishna shared internal exchange information with a third person for illegal gains.

This search by the IT officials comes after the Securities and Exchange Board of India (SEBI) passed an order on February 11, in which the regulator found lapses in the “governance and ethical conduct” of Ramkrishna. In the same order, it was mentioned that the organisation found her allegedly sharing confidential information with a third person named Rigyajursama. They also imposed a fine of rupees three crore on Ramkrishna.

After the IT officials, the Central Bureau of Investigation (CBI) also questioned Chitra Ramkrishna, at her house in the city on Friday. The central probe agency issued lookout circulars against Ramakrishna along with the former chief executive officer (CEO) Ravi Narain and chief operating officer Anand Subramanian, so that they don't leave the country.

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Moreover, SEBI has also barred NSE from launching any new product for a period of six months. They have also restrained Ramkrishna from associating with any market institution for three years.

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The order stated, “The sharing of financial and business plans of NSE is a glaring, if not unimaginable act, that could shake the very foundation of the stock exchange.”

The other issue raised was the appointment of Anand Subramanian as the Chief Operating Officer, which was not cleared by the Nomination and Remuneration Committee (NRC). As per the Sebi order, this was a “glaring conspiracy of a money-making scheme” that involved Ramkrishna and Subramanian, along with an unknown guru.

Five years back, Ramkrishna had quit as the MD of the stock market. While reports claimed that she had quit due to health reasons, the press release stated that she resigned with immediate effect due to “personal reasons.”

Ramkrishna had joined NSE when late RK Patil had set it up in 1992. She was also named the Chairperson of the World Federation of Exchanges (WFE), which is a global body for exchanges and clearing houses. She has spent over 23 years at the stock exchange.