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SEBI has imposed a monetary penalty of Rs 50 lakh on the National Stock Exchange (NSE) for changing the terms of remuneration of its former MD & CEO, Chitra Ramkrishna, and giving her a higher parting sum when she quit. SEBI permission is required for the compensation package of the top management of stock exchanges.
BusinessLine had reported in July 2017 that Ramkrishna took home Rs 44 crore in just three years as MD and CEO.
SEBI said it took action based on a letter received from the Ministry of Finance referring to a news report, which said Ramkrishna had earned about Rs 44 crore in a period of three years, during which she held the aforesaid position at NSE.
"I am of the view that the terms and conditions of the MD’s compensation has been changed by way of the decision dated November 26, 2012 of the Compensation Committee without obtaining prior approval of SEBI under regulation 27(4) of the SECC Regulations. Further, there is no material to prove that the said changes in the terms and conditions of the compensation structure which benefitted its senior management, including its MD, was communicated to SEBI for its approval. It has also not been brought to my notice by NSE that they have even applied for post facto approval of SEBI under regulation 27(4) of the SECC Regulations. Thus, the allegation against the Noticee to such extent stands established and therefore, the Noticee violated regulation 27(4) of the SECC Regulations," the SEBI official said in his order.
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