Former NSE MD Chitra Ramakrishna moves SAT against Sebi colocation order

Sebi has directed Ramkrishna to disgorge a fourth of her salary for FY2013-14

Chitra Ramkrishna, former managing director and chief executive officer of the National Stock Exchange (NSE) has moved the Securities Appellate Tribunal (SAT) against orders passed by Securities and Exchange Board of India (Sebi) in the co-location case. The tribunal is likely to take up the matter on Thursday.

Sebi had directed Ramkrishna to disgorge a fourth of her salary for FY2013-14 and also barred her from associating with any listed company or market intermediary for a period of five years. Ramkrishna was at the helm of NSE when its co-location trading systems were allegedly misused by certain brokers to gain unfair access. 

Sebi had also passed similar directives against Ramkrishna’s predecessor Ravi Narain. Narain has already moved SAT and obtained partial relief against the Sebi order. Most other entities, including NSE and its current staffers, against whom Sebi had passed directives, have also moved SAT and obtained partial relief.

In a related development, the tribunal rejected the exchange’s plea seeking relaxation on transferring the disgorgement amount to Sebi. On May 22, SAT had directed the bourse to transfer ~687 crore to Sebi within two weeks. The NSE moved SAT seeking permission to provide bank guarantee instead of transferring the amount. 

“In our view, we do not find any reason to modify our order dated May 22. The appellant should transfer the amount that is already kept in the escrow account, as per the interim order of Sebi to be transferred to Sebi account,” the SAT said in an order dated June 6.