CBI starts quizzing ex-NSE GOO Subramanian; lands at Sebi for evidence

The Central Bureau of Investigation (CBI) has questioned former group operating officer of the National Stock Exchange (NSE) Anand Subramanian over the past three days in Chennai, according to people in the know. The investigative agency has also collected relevant documents from the Securities and Exchange Board of India (Sebi) amid revelations about irregularities at NSE.

The CBI team visited the Sebi office in Mumbai recently, a source said without giving the date. Sebi did not respond to a query on the matter.

CBI had on Friday questioned Chitra Ramkrishna, former managing director (MD) and CEO of NSE. A day later, it examined former chief executive officer (CEO) of the exchange Ravi Narain. The agency issued lookout circulars against her, Narain and Subramanian to stop them from leaving the country.

The CBI action follows the Income Tax Department raid on the premises of Ramkrishna and Subra­manian last week. The tax department action was over charges of alleged financial irregularities and tax evasion against the two. A possible fund diversion to tax havens is also being probed.

Subramanian was offered a salary of Rs 1.68 crore per annum to join NSE as chief strategic advisor from April 1, 2013 when he was vice president at Leasing & Repair Services of Transafe Services Limited, a subsidiary of Balmer Lawrie & Co. His salary was less than Rs 15 lakh per annum. Sebi, in its report earlier this month, observed that best practices were not followed in Subramanian’s appointment.

In less than three years, Subramanian’s salary jumped to Rs 4.2 crore for working as a consultant for four days in a week. Subramanian was later re-designated as group operating officer (GOO) and advisor to MD with effect from April 01, 2015, but was never declared a key management personnel by NSE.

Sebi penalised NSE, Ramkrishna and Narain for governance lapses in hiring Subramanian. Ramkrishna, Narain, Subramanian and NSE were told to pay Rs 2 crore each. Ramkrishna and Subramanian were restrained from associating with any market infrastructure institution or Sebi-registered intermediary in any capacity for a period of three years. Narain was barred for two years.