Sebi’s Order Stayed Against Former NSE Chief Ravi Narayan

Sebi’s order stayed against former NSE chief Ravi Narayan.

The Securities Appellate Tribunal (SAT) has stayed the order issued by markets regulator Securities and Exchange Board of India (SEBI) against former National Stock Exchange (NSE) chief Ravi Narayan.

This restriction has been imposed with the condition that Narayan will have to deposit Rs 50 lakh with SEBI within four weeks.

In an order passed on Thursday, SAT said that the deposited amount will have to be kept by SEBI in such an account, on which interest is earned.

SEBI had sent a notice to him in the case of default in functioning.

In an order on February 11, the capital markets regulator had barred Narayan from associating with any market infrastructure institution or any SEBI-registered intermediary for two years.

Along with this, a fine of Rs 2 crore was also imposed on him.

In the show-cause notice, it was alleged that Chitra Ramakrishna had appointed Anand Subramanian as a personal consultant on a huge salary even though he did not have any special qualifications.

Narayan is alleged to have been one of the 10 directors who passed a resolution delegating executive powers to Subramanian. Besides, Narayan also failed to inform SEBI about the lapses in NSE.

Sebi’s order stayed: In the order, SAT prima facie found that the resolutions passed for delegating executive powers to Subramanian targeted Narayan alone.

The SAT held that the imputation of the appellant (Narayan) appears to be discriminatory as it was a collective decision of the Board of Directors.

Not only this, but the fine imposed on the appellant for the said contravention also appears to be exorbitant.

The tribunal directed that the order relating to Narayan will remain stayed, provided he deposits Rs 50 lakh before SEBI within four weeks.

It also directed SEBI to file its reply within three weeks and listed the matter for hearing on June 30.