Dark fibre case: Deposit ₹12.5 lakh of total fine imposed by SAT, SC to ex-NSE CEO
The Hindu
Supreme Court asks Chitra Ramkrishna to deposit ₹12.5 lakh out of ₹25 lakh penalty in dark fibre case.
The Supreme Court on February 26 asked former managing director and chief executive officer of the National Stock Exchange Chitra Ramkrishna to deposit ₹12.5 lakh out of the ₹25 lakh penalty imposed by the Securities Appellate Tribunal in the dark fibre case, as it agreed to hear her plea.
A Bench of Justices Sanjiv Khanna and Dipankar Datta issued notice on her plea challenging the December 14, 2023, order of the SAT by which it had reduced the penalty of ₹2 crore imposed by SEBI for violation of the Securities Contracts (Regulation) Act, 1956 (SCRA) to ₹25 lakh saying the fine imposed by the market regulator was arbitrary and excessive.
Justice Khanna told senior advocate Siddharth Bhatnagar, appearing for Ms. Ramkrishna, "You were made liable because you were the head of the institution. You deposit 50 per cent of the amount, then we will see."
Mr. Bhatnagar contended that she was head of the institution and could not be vicariously held liable for the wrong done by the NSE.
The Bench ordered that no coercive action be taken against Ms. Ramkrishna subject to her depositing 50% of the penalty and sought a response from SEBI on her plea for a stay of operation of SAT order on the fine amount.
On December 14, the SAT had quashed the SEBI's order imposing a fine of ₹7 crore on the NSE in the case.
The case relates to the alleged differential access given to certain broking firms in the form of 'dark fibre' at NSE, to connect across the co-location facilities before other members.