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Sebi asks former NSE MD to pay up Rs 2-crore fine

MUMBAI: Markets regulator Sebi has asked former MD and vice-chairman of NSE, Ravi Narain to pay a pending penalty of Rs 2 crore that was imposed on him for violations of several Sebi rules. Through a notice posted on its website, Sebi warned Narain that non-payment could lead to his arrest, attachment of his bank account, sale of his properties, etc.
On February 11 this year, Sebi had passed an order in which Chitra Ramkrishna, NSE’s former MD, Narain and four other entities were named. Five of the six entities, including Narain and Ramkrishna, were penalised for serious breach of governance issues between April 2013 and December 2016. This was the period when Ramkrishna was the MD, while Narain was the VC at NSE.
The Sebi investigation showed that, led primarily by Ramkrishna, a person named Anand Subramanian was appointed to the exchange by flouting several rules. It was also found that for several years Ramkrishna had shared confidential information about the exchange with an unnamed Himalayan Yogi over emails.
Sebi had put a Rs 3-crore penalty on Ramkrishna and Rs 2 crore on Narain. Three of the four other entities named in the order were also fined. Narain is yet to pay the penalty while Ramkrishna has moved the Securities Appellate Tribunal (SAT).
The Sebi notice to Narain said that in addition to the Rs 2-crore penalty, an interest has also accrued at 1% per month on the unpaid amount. There’s also a Rs 1,000 recovery fee that Narain needs to pay. Sebi also reminded him not to transfer any property, “otherwise than for adequate consideration”.
According to NSE’s annual report for FY13, at the end of which he was elevated as the vice-chairman, a non-executive role, his gross remuneration was Rs 9.1 crore. As a board member, Narain received a remuneration of Rs 81 lakh during FY17, the last full year of his association with NSE.




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