Chitra Ramkrishna shared confidential information with an outsider whom she called a “Himalayan yogi”.
Former National Stock Exchange (NSE) chief executive Chitra Ramkrishna, who is accused of serious stock market irregularities, including giving confidential information to an outsider she called a “Himalayan yogi”, has been arrested by the CBI.
The arrest comes just a day after a Delhi court denied her request for bail pending arrest and held the Central Bureau of Investigation, or CBI, responsible for inaction and “lack of care” in the investigation against her over the past four years.
Special Judge Sanjeev Aggarwal also said that the market regulator, the Securities and Exchange Board of India (SEBI), was “too kind” to the defendant, noting that she was facing serious charges and would require lengthy interrogations in custody to find out the truth.
Last month, the mysterious “Himalayan yogi” who allegedly influenced Ms. Ramkrishna’s decisions was exposed as Anand Subramanian, also a former stock exchange employee arrested in a market manipulation case.
The former NSE COO was a “yogi” who communicated with Chitra Ramkrishna via email, according to CBI sources.
His controversial appointment was one of the decisions Chitra Ramkrishna made under the influence of the so-called yogi, according to the SEBI report.
SEBI accused Chitra Ramkrishna and others of alleged mismanagement of Mr. Subramanian’s appointment and excessive promotions.
He stated that the NSE and its board were aware of the interaction with the controversial adviser, but chose to “keep the matter under wraps.”
The CBI is investigating the alleged mishandling of information from the computer servers of market exchanges to stockbrokers, in what has come to be known as the “joint offering scam”.
Ms. Ramakrishna and another former NSE CEO, Ravi Narayan, as well as two other officials, were fined by SEBI for shortcomings in executive recruitment.
Ravi Narain was Managing Director and CEO of the National Stock Exchange from April 1994 to March 2013 and Chitra Ramkrishna was Managing Director and CEO of NSE from April 2013 to December 2016.
In response to public criticism, the NSE said it was “committed to the highest standards of governance and transparency” and described the problem as “nearly six to nine years away”.