New Delhi,  Having regard to its important role as a first-level regulator, recognised as stock exchange under the provisions of SCRA, 1956, as well as systemically important MII, it is not correct to compare the institution with any other company incorporated under the Companies Act, 2013, SEBI had noted after its investigation in the Chitra Ramkrishna case.

Equally, it is also not in the fitness of things that any misdemeanour by its key officials should be treated like any other violation by the employee of an ordinary company, especially in view of the fact that it is a Recognised Stock Exchange (RSE) and further SECC Regulations, 2012 and SECC Regulations, 2018 lay down the code of ethics, SEBI said.

Chitra Ramkrishna, NSE and Ravi Narain were trying to trivialise the serious allegations made in the SCN in respect of a Market Infrastructure Institution (MII) and its key functionaries, by contending that acts alleged against Ramkrishna at the most amounts to violation of employee regulations of the NSE under which maximum punishment is termination from service, which has already happened in the matter as she resigned from service on December 2, 2016.

SEBI noted that NSE is an MII. It is a recognised stock exchange (RSE) in terms of SCRA, 1956... in terms of provisions of SCRA 1956, SECC Regulations and various other circulars issued by SEBI from time to time.

The NSE is the first-level regulator as RSE and that 51 per cent shareholding is held by public shareholders in accordance with provisions of SECC Regulations, 2012 (since repealed) and SECC Regulations, 2018.

As per its last annual report, NSE is one of the largest exchanges in the world and the No. 1 exchange in India. It is inter-alia the largest derivative exchange in the world in terms of contracts traded, second largest derivatives exchange in the world in terms of currency futures traded, the fourth largest exchange in the world in the capital market cash segment etc., and has a combined market capitalisation of Rs 2,02,95,813 crore.

Any conduct which does not conform to the code of ethics and conduct specified in the SECC Regulations, 2012 by the KMP of Stock exchanges may attract appropriate action by SEBI as deemed fit in accordance with the provisions of law.

SEBI found that the contention of the noticees that acts alleged against Ramkrishna at the most amounts to violation of employee regulations of NSE under which maximum punishment is termination from service, which has already happened in the matter and therefore no action from SEBI is required, or tenable.