You’ve undoubtedly heard everything there is to know about Chitra Ramkrishna, the former CEO and MD of the NSE, and her affair with a “Himalayan Yogi” by now. But, in case you’re unaware of this then go ahead reading about it now.
The National Stock Exchange is one of the world’s largest stock exchanges, facilitating the purchase and sale of financial instruments such as stocks, options, and futures. Consumers no longer interact with the NSE because your stockbroker does it for you. However, the stock exchange is where the magic happens in the broader scheme of things.
However, NSE was not always this potent. It wasn’t even India’s largest stock exchange. The Bombay Stock Exchange held that designation (BSE). However, since its inception in 1875, the BSE has been mostly administered by a group of brokers who placed their interests above everything else. They pretty much defined the rules, and investors and businesses were merely pawns in this game.
But then, in 1992, the mother of all scandals occurred. A man named Harshad Mehta discovered vulnerabilities in the banking system and used them to acquire and inflate stock values. Because there was minimal control, the markets crashed and everyone suffered in lockstep. The government had no choice but to act. Stock exchanges needed to be held more accountable.
So they approached the state-owned Industrial and Development Bank of India (IDBI) for assistance in establishing a stock exchange that could compete with the BSE—just to give them something to think about. The plan was to establish a professional management team and digitize everything—to transition from paper to electronic share trading. And it was effective.
The NSE thrived, but the BSE declined in market share. The NSE was developing new products and collaborating with brokers. BSE, on the other hand, was late to the party. The NSE eventually surpassed the Bombay Stock Exchange.
But wait…guess who was involved in the establishment of the NSE.
Of course, the main protagonist of the story is Chitra Ramkrishna. The founding team, which included R.H. Patil (the NSE’s initial MD), Ravi Narain (who eventually became CEO), and a few others, was largely responsible for establishing the NSE and running it for the next 25 years. In the process, the NSE became, in some senses, what it previously despised: a cabal of insiders with minimal accountability.
And these remarks were made in the context of the infamous co-location scam (albeit this was not public knowledge at the time).
What exactly is this co-location scam? You may ask.
Well, the NSE appears to have given some brokers priority access to data, allowing them to profit from buying and selling equities on the market. According to some estimations, brokers profited to the tune of 50,000 crores. Despite their denials, both the NSE and Chitra Ramkrishna were punished by SEBI.
This is when things start to get interesting. During the probe, SEBI came across several secret emails between the then-Managing Director of the NSE, Chitra Ramkrishna, and a specific Yogi with the email address [email protected]. The emails contain detailed instructions on appointments, organizational structure, and remuneration. Even a vacation in Seychelles!
And it’s strange to imagine that one of India’s most prominent ladies at the time was taking her cues from a mystic. But that isn’t all. The Yogi also appears to have given some very specific instructions concerning a particular Anand Subramanian.
What is Anand Subramanian’s name?
Okay, let’s take another diversion. When Ramkrishna was appointed CEO in 2013, she walked in with Subramanian and gave him a salary of ₹1.63 crores. In fact, he was offered a position as Chief Strategic Advisor at NSE.
This appears to be a critical position.
But here’s the catch. Anand Subramanian was the VP, Leasing & Repair Services for Transafe Services Limited, a logistics company, at the time. He had no prior expertise in the financial markets, and his previous income was only ₹14 lakhs.
Odd! But no one said anything.
He was quickly promoted to Group Operating Officer, and nearly everyone in the organization reported to him. However, he was never identified as a “key managerial person” at NSE.
Again, warning bells should have rung given that SEBI (the regulator) clearly mandates this. However, it went unnoticed.
Anand Subramanian was one of the most powerful people at the NSE by 2016. He worked part-time as a consultant for NSE and was appointed Group Operating Officer and Advisor to the CEO.
He also received a salary of roughly ₹4.21 crores.
To recap, Chitra Ramkrishna handled Anand Subramanian’s appointment and contributed to his meteoric climb inside the organization. She also shared sensitive information with a mystic who gave her advice on a variety of topics, including Anand Subramanian. And the board of directors, who were supposed to spot these anomalies, appeared to be unconcerned.
In 2016, both Chitra Ramkrishna and Anand Subramanian resigned. The board heaped appreciation on Chitra Ramkrishna in particular.
Keep in mind that the NSE is not a government-owned company. In actuality, public stockholders own 54% of the corporation, while the rest is owned by a variety of institutions, including the SBI. However, as the “first layer of monitoring” and in such a prominent position, SEBI strictly oversees stock exchanges.
That is why they are outraged over everything. For the time being, they have punished NSE, Chitra Ramkrishna, Anand Subramanian, and a few others, as well as imposed other non-monetary punishments. They’re also trying to figure out who the mysterious yogi is, while NSE still believes it’s Anand Subramanian.
But what are we to make of it all?
We don’t know, to be honest. However, there are a few possibilities circulating.
Theory 1: Chitra Ramkrishna was foolish, believing that the spiritual yogi would assist in propelling NSE to new heights. However, one has to ask why the two were so invested in Anand Subramanian.
Theory 2: Chitra Ramkrishna was working with Anand Subramanian, and the Yogi was only a ruse set up by the two parties to avoid scrutiny.
Theory 3: The Yogi was Anand Subramanian. He was in charge of the puppets. And Chitra Ramkrishna fell victim to a minor swindle. That’s the only thing there is to it. This notion is supported by your very own NSE.
Theory 4: There is a Yogi. He isn’t without a face. He isn’t anonymous. He works calmly in the background. And he was the one who oversaw the entire plan. This notion is strengthened further by the fact that one email exchange* does allude to a meeting in Seychelles — between Chitra Ramkrishna, Anand Subramanian, and…… the mystic.
