MUMBAI: The Securities Appellate Tribunal (SAT) on Thursday granted interim relief to Anand Subramanian, former group operating officer of NSE. Earlier, Sebi had slapped a Rs 2-crore penalty on him for allegedly making incorrect and misleading statements about his appointment. Subramanian appealed against the Sebi order of February 11.
SAT directed Subramanian to deposit Rs 60 lakh within four weeks. “We direct the appellant to deposit a sum of Rs 60 lakh within four weeks from today (May 11). If the amount is deposited, the balance amount shall not be recovered during the pendency of the appeal. The amount so deposited shall be kept in an interest-bearing account, which would be subject to result of the appeal. The stay application is accordingly disposed of,” SAT said in its order.
Besides becoming a key management personnel as GOO, the Sebi order said that Subramanian exploited Chitra Ramkrishna, former MD & CEO, by creating another identity before her in the form of Mr. Rigyajursama, an unknown person, to guide Ramkrishna perform her duties according to his wish. Subramanian allegedy acted against the interest of NSE by influencing the decisions of Ramkrishna in collusion with the unknown person.
However, SAT stated that this finding of Sebi prima facie “appears to be based on conjectures and beyond the show cause notice. Further, prime facie the imposition of penalty for making misleading statement about his appointment and being a KMP also appears to be excessive and arbitrary.” SAT gave Sebi three weeks to file its reply.
What Sebi order said on Subramanian
Sebi order said that Subramanian exploited Chitra Ramkrishna, former MD & CEO, by creating another identity before her in the form of Mr. Rigyajursama, an unknown person, to guide Ramkrishna perform her duties according to his wish