The Securities and Exchange Board of India (SEBI) on Thursday issued a recovery notice of over Rs 2 crore to former CEO of National Stock Exchange (NSE) Ravi Narain in the co-location scam case.
The notice came after Narain failed to pay the fine imposed on him by SEBI. The penalty was imposed on Narain in February this year for violating securities contract rules in a case related to the appointment of Anand Subramanian as group operating officer and advisor to MD.
Sebi said a sum of Rs 2,06,01,000 (Rupees Two Crore Six Lakh One Thousand) along with further interest, all costs, charges and expenses incurred in respect of all the proceedings taken for recovery of the said sum is due from the former CEO of NSE.
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In the event of non-payment of dues, Sebi said it will recover the money by attachment and sale of movable property, attachment of bank accounts, attachment and sale of your immovable property, arrest & detention in prison, and appointing a receiver for the management of your movable and immovable properties.
Further, upon service of this notice, Narain is no more competent to mortgage, charge, lease or otherwise deal with any property belonging to you except with the permission of the Recovery Officer and any such transfer shall be deemed void as per rule 16 of the Second Schedule to the Income-tax Act, 1961 read with section 28A of the SEBI Act.
The regulator had levied a fine of Rs 3 crore on Chitra Ramkrishna, Rs 2 crore each on the NSE and Anand Subramanian, and Rs 6 lakh on VR Narasimhan, who was the chief regulatory officer and chief compliance officer.
Ramkrishna was MD and CEO of NSE from April 2013 to December 2016, and Narain was the MD and CEO of the exchange from April 1994 till March 2013. Thereafter, he was appointed as vice-chairman in the non-executive category on the NSE’s board from April 2013 and remained so till June 2017.
First Published: Apr 21, 2022 7:02 PM IST
