The Securities and Exchange Board of India (SEBI) has refused to release its inspection reports since 2013 under the RTI Act relating to the functioning of the National Stock Exchange which has been embroiled in controversy due to the market regulator’s damning report on alleged irregularities in the functioning of the stock exchange’s former heads.
By denying the information, SEBI replied to RTI activist Subhash Agrawal that the information sought by him relates to its internal functioning, and its disclosure could impede decision-making in its supervisory and regulatory role.
Using the Right to Information Act (RTI), Agrawal requested from the SEBI copies of its full National Stock Exchange (NSE) inspection reports from 2013 to date.
He said in an email to PTI: “It was mentioned in the RTI application that the Supreme Court of India prepared inspection reports issued by the Reserve Bank of India (RBI) in respect of banks (private or public sector) in terms of the RTI Act. is, have considered. “
“With RBI being the regulatory body with regard to banks, SEBI is obliged a regulatory public authority with regard to the NSE to provide inspection reports with regard to the NSE in terms of provisions of the RTI Act. I also requested for web link, if any, who have such information, and file notes on the movement of this RTI application, ”said Agrawal.
Through coverage under section 8 (1) (d) of the RTI Act, SEBI stated that information sought includes commercially confidential information from other entities, the disclosure of which may prejudice its competitive position.
“In view of the above, the information sought is released under section 8 (1) (d) of the RTI Act, 2005. However, information on any enforcement action taken by SEBI is available in the public domain on the “SEBI’s website: www.sebi.gov.in under the heading ‘Enforcement’,” it said.
On February 11, SEBI accused the NSE’s former chief executive officer (CEO) and managing director (MD), Chitra Ramkrishna, and others of alleged management failure in the appointment of Anand Subramanian as chief strategic adviser and his reappointment as operating group. . officer and adviser to the managing director. Ramkrishna told the regulator that a shapeless mysterious “Yogi” was leading her over emails to make the decisions.
The Central Bureau of Investigation (CBI), which expanded its investigation into the compound scam after the SEBI report surfaced, arrested both of them and told the court that the ‘Yogi’ is understood as a Subramanian who claimed beneficiary of her was. decisions.
The agency, meanwhile, is focusing on retrieving email exchanges between Ramkrishna and firstname.lastname@example.org.
Ramkrishna, who succeeded former CEO Ravi Narain in 2013, appointed Subramanian as her adviser who was later promoted to Group Operations Officer (GOO) at a fat salary check of Rs 4.21 crore per annum.
Subramanian’s controversial appointment and subsequent elevation, in addition to crucial decisions, were led by the unidentified person who claimed Ramkrishna was the ‘Yogi’ home in the Himalayas, an investigation into her email exchanges showed during the SEBI order audit.
In her statement to the SEBI, Ramkrishna said that the unknown person with an email ID email@example.com was a ‘Sidha-purusha’ or ‘paramhansa’ who did not have a physical personality and could at his discretion realize.
Ramkrishna elevated as managing director and CEO on April 1, 2013 and left the NSE in 2016. It was during this period that co-location was initiated by the stock exchange, the CBI claimed.
In the co-settlement facility offered by the NSE, brokers can place their servers inside the stock exchange’s premises giving them faster access to markets.
It is alleged that some brokers, in collaboration with insiders, abused the algorithm and the co-settlement facility to make windfall profits.