The National Stock Exchange said it has taken various measures over the years to strengthen its operations. After a recent order by the market regulator, SEBI highlighted various instances of serious lapses at the stock exchange.
In April 2019, SEBI’s investigations unearthed evidence of gross negligence and a complete disregard for public and investor interests at the NSE. SEBI’s latest order detailing how NSE’s former Managing Director Chitra Ramkrishna suo motu appointed an unqualified person to a top management role and then handed over key management and operational decisions to him, while taking guidance from a so-called “Himalayan yogi” with “supernatural powers”, reveals just how deep the rot had permeated India’s all-powerful Market Infrastructure Institution.
“The said order relates to certain issues at NSE during the period 2013-2016 and are therefore almost 6-9 years old. In this regard, over the last few years there have been several changes at the board and management level at NSE.,” NSE said in a statement.
SEBI has also instituted various changes in the governance structure of market infrastructure institutions (MIIs), including board committee structures and oversight, the tenor of management, accountability for lapses at MIIs etc. These have strengthened the control environment of MIIs. SEBI has been closely monitoring and supervising the operations of NSE and other MIIs.
“NSE has operationalized the directives of SEBI on various matters over the years and has taken various measures to further strengthen the control environment including the technology architecture.,” it added.
“We wish to reiterate that NSE is committed to the highest standards of governance and transparency and will extend full co-operation to the regulator for a satisfactory closure of the matter,” NSE said.