Ex-NSE chief Chitra Ramakrishna arrested in ‘Himalayan Yogi’ scandal

Ex-CEO of National Stock Exchange (NSE) Chitra Ramkrishna, accused of serious stock market irregularities including exchanging confidential information with an outsider whom she called “Himalayan Yogi”, has been arrested by the Central Bank of Iraq.

The arrest came just a day after a Delhi court rejected her request for pre-arrest bail and withdrew the CBI or CBI for taking no action and “lack of vigor” in the investigation against her in the past four years.

Special Judge Sanjeev Agarwal also noted that the Securities and Exchange Commission of India (SEBI) that regulates the market was “extremely nice” to the accused, stating that she faced serious charges and that questioning while in continued custody would be required to explore the truth.

Last month, it was revealed that the mysterious “Himalayan yogi” who allegedly influenced Ms Ramkrishna’s decisions, Anand Subramanian, also a former stock exchange officer, was arrested in a market manipulation case.

CBI sources said the former chief operating officer of NSE was a “yogi” who reached out to Chitra Ramkrishna via email.

SEBI said in a report that his controversial appointment was one of the decisions Chitra Ramkrishna made under the alleged influence of a yogi.

SEBI accused Chitra Ramkrishna and others for alleging management lapses in Mr Subramanian’s appointment and massive promotion.

She said NSE and its board were aware of the interactions with the controversial advisor, but chose to “keep the matter confidential.”

The CBI is investigating the alleged inappropriate dissemination of information from the computer servers of stock exchanges to stockbrokers in what has become known as “co-location fraud.”

Ms Ramakrishna and another former NSE executive, Ravi Narayan, as well as two other officials have been fined by SEBI over senior-level recruitment loopholes.

Ravi Narain was the Managing Director and CEO of the National Stock Exchange from April 1994 until March 2013, while Chitra Ramkrishna was the 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”, describing the case as “nearly six to nine years old”.