Centre mulls multi-agency probe into charges at NSE under Chitra Ramkrishna

The government is mulling a multi-agency probe into the irregularities at the National Stock Exchange (NSE) during the tenure of its former chief Chitra Ramkrishna.

There is a feeling in the government that such a probe may be needed in view of the fresh issues revealed in the Securities and Exchange Board of India's (Sebi) order in the colocation case last week, sources told ET. The Central Bureau of Investigation (CBI), Serious Fraud Investigation Office (SFIO), or any other relevant agency could initiate an investigation. The income-tax department has already conducted searches at the premises of Chitra Ramkrishna as well as Anand Subramanian and his wife in Mumbai and Chennai.

'Restoration of Investors' Faith Important'

The government feels that the ambit of the probe must be widened.

The Centre is keeping a close tab on the developments and other agencies may join the probe, officials told ET.

A final decision will be taken after the issue is discussed with all stakeholders.

The current NSE chief Vikram Limaye had on Wednesday briefed finance ministry officials on the circumstances of Ramkrishna's exit and subsequent measures taken to address the issues.

A high-level meeting was held in the finance ministry on Thursday to discuss the developments.

There are concerns about the manner of Ramkrishna and Subramanian's exit, destruction of a laptop containing crucial evidence, the role of the board and other executives, and possible links to brokerage houses that benefitted during the period, a government official said.

"We are closely tracking the developments. If required, other investigative agencies may be brought in. Restoring the faith of investors is important," a senior finance ministry official said, adding that the government will ensure a fair probe in the matter.

The Sebi order says that an unidentified person, referred to as a yogi, influenced Subramanian in key appointments as well as in the day-to-day working of the exchange.

The Sebi charged Ramkrishna and others for alleged governance lapses in the appointment of Subramanian as the chief strategic advisor and his re-designation as group operating officer and advisor to MD. It levied a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on the NSE, Subramanian and former NSE MD and CEO Ravi Narain, while a fine of Rs 6 lakh was imposed on VR Narasimhan, who was the chief regulatory and compliance officer at the exchange.

The I-T officials claimed that there was a careful act of cleaning up digital evidence. All digital footprints have been carefully wiped off, one tax official said.

Meanwhile, the Congress party on Thursday questioned Prime Minister Narendra Modi and finance minister Nirmala Sitharaman for their silence over the NSE revelations.

"The income tax (department) has woken up belatedly. The finance and corporate ministries remain in denial," Congress general secretary and chief spokesperson Randeep Surjewala said on Twitter.

The Congress leader also said questions remain as to how a 'Baba' was remotely running the NSE. "Will the prime minister and the finance minister tell - Where is the 'Baba'? Why can't his IP address be traced? How do you rule out 'insider trading'? Despite info, what were PM-FM-SEBI doing since 2016," Surjewala asked.