Sebi issues ₹2 crore recovery notice to ex-NSE chief Ravi Narain
Premium- The capital markets regulator also warned of arrest and attachment of assets and bank accounts if Narain fails to make the payment within 15 days
Market regulator Securities and Exchange Board of India (Sebi) on Thursday sent a notice to former National Stock Exchange (NSE) chief Ravi Narain, directing him to pay ₹2.06 crore in a case related to governance lapses at the stock exchange.
The capital markets regulator also warned of arrest and attachment of assets and bank accounts if Narain fails to make the payment within 15 days. The notice came after Narain failed to pay the fine imposed on him by SEBI.
In case of non-failure of payment, Sebi stated that it shall recover the money by one or more of the following modes:
(a) attachment and sale of your movable property;
(b) attachment of your bank accounts;
(c) attachment and sale of your immovable property;
(d) arrest and detention in prison;
(e) appointing a receiver for the management of your movable and immovable properties.
The regulator, through an order passed on February 11, levied a fine of ₹2 crore on Narain in the matter of governance issues over the appointment of the chief strategic officer at the stock exchange in 2013.
In its fresh notice, SEBI directed Narain to pay ₹2.06 crore, which includes interest and recovery cost, within 15 days.
In the event of non-payment of dues, the markets regulator will recover the amount by attaching and selling his moveable and immoveable property. Besides, Narain also faces attachment of his bank accounts and arrest.
In the same matter, SEBI imposed a penalty of ₹3 crore on Narain's successor Chitra Ramkrishna in the key appointment as well as for sharing confidential information of the company with an unidentified person.
Narain was the MD and CEO of the NSE from April 1994 till March 2013. 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. Ramkrishna was MD and CEO of NSE from April 2013 to December 2016.