Income Tax Department sleuths, on Thursday, raided the residence of former National Stock Exchange (NSE) chief executive Chitra Ramkrishna. Searches at the residence of former NSE chief operating officer Anand Subramanian are also currently underway.

 

The action comes within days of market watchdog Securities & Exchange Board of India (Sebi) accusing the former NSE CEO of gross corporate governance lapses which included leaking sensitive financial information about the exchange to a certain “Himalayan Yogi” and the appointment of Subramanian. The market regulator also imposed a penalty of Rs 3 crore on Ramkrishna and Subramanian.

 

The tax department is conducting the searches based on the allegations made in the Sebi order dated February 11. Ramkrishna stepped down from the position at NSE in 2016.

 

Last week, Sebi imposed a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on the NSE and Ravi Narain for allegedly breaching securities contract rules related to the appointment of Anand Subramanian as group operating officer and adviser to the managing director.

 

Sebi, last week, in its order said Ramkrishna was manipulated by a “Yogi” who may be largely dwelling in the “Himalayas”. The regulator also said that she also took orders from the anonymous yogi to run the bourse and bypassed the NSE board and compromised internal systems with her conduct.

 

The spiritual master of Ramkrishna took interest in her hairstyle, shared songs with her and went on a vacation with her to Seychelles to “chill” out, according to a Sebi order. In an e-mail to Ramkrishna on February 18, 2015 the so-called yogi said, “Today you are looking Awesome. You must learn different ways to platt your hair which will make your looks interesting and appealing!! Just a free advice, I know you will grab this. Keep March mid a little free.”