The Supreme Court has refused to interfere with a Delhi High Court order denying relief to former National Stock Exchange (NSE) managing director and chief executive officer Chitra Ramkrishna in a case involving alleged offences under the Prevention of Corruption Act (PC Act). The development means the proceedings against Ramkrishna in connection with the NSE-related case will continue after the apex court declined to entertain her challenge to the High Court’s decision.
Ramkrishna had approached the Supreme Court after the Delhi High Court rejected her plea challenging the proceedings against her. The case forms part of investigations into alleged irregularities surrounding the functioning of the NSE and has resulted in proceedings against several individuals associated with the exchange. The Central Bureau of Investigation (CBI) has been probing aspects of the matter, including allegations concerning appointments and decisions taken during Ramkrishna’s tenure at the country’s largest stock exchange.
Apex court declines intervention
A Supreme Court Bench considered Ramkrishna’s challenge to the Delhi High Court order but declined to interfere, effectively allowing the High Court’s findings to stand. Ramkrishna had sought relief from the proceedings under the anti-corruption law, raising legal questions over the applicability of provisions of the PC Act to her in the case.
The controversy has involved the question of whether officials of the NSE could fall within the scope of the anti-corruption legislation despite the exchange not being a conventional government department or public-sector organisation. Courts examining the matter have considered the nature of the functions performed by the exchange and the regulatory framework under which it operates.
NSE case continues
Ramkrishna served as NSE managing director and CEO between 2013 and 2016 and subsequently became one of the central figures in investigations into alleged governance failures at the exchange. Separate proceedings have examined issues including appointments made during her tenure and the sharing of confidential information with an unidentified individual described in earlier regulatory proceedings as a “Himalayan yogi”.
The broader NSE controversy has also included the co-location case, which concerns allegations that certain brokers received preferential access to the exchange’s trading systems. Investigative agencies and market regulator SEBI have pursued different strands of the matter over several years, resulting in multiple legal proceedings involving former exchange officials and other accused persons.
High Court order stands
With the Supreme Court refusing to intervene, the Delhi High Court’s order denying Ramkrishna relief remains in force. The decision does not amount to a final determination of her guilt or innocence in the underlying case, which will have to be decided through the appropriate proceedings on the basis of evidence.
The apex court’s refusal to interfere represents another setback for the former NSE chief in her efforts to challenge the anti-corruption proceedings and clears the way for the case against her to proceed before the competent court.