Ajay Tyagi, the outgoing chief of the Securities and Exchange Board of India (Sebi), on Wednesday said the capital markets regulator has investigated the NSE-colocation case earnestly.
Tyagi, who spoke at a press conference after handing over the charge to the newly appointed Sebi chairperson Madhavi Puri Buch, said that no one can say the regulator has “diluted” the order passed in the NSE case.
“We came out with the orders as per our remit and understanding. I want to reassure that it was done with right intention,” said Tyagi.
Tyagi who has finished a five year term as the Sebi chief said the NSE co-location issue is “complex” and other enforcement agencies too are investigating the case.
“Till now, all the facts and findings in the public domain are based on Sebi’s findings disclosed in its orders, and we should wait for the investigation of other agencies as well,” said Tyagi.
Sebi is cooperating with other agencies and sharing the information sought with them, he added.
Last month, Sebi issued an order penalising Chitra Ramkrishna, former MD and CEO of NSE and a few others for violating securities contract rules in a case related to the appointment of Anand Subramanian as group operating officer and advisor to the MD.
Sebi said she was steered by a yogi, dwelling in the Himalayan ranges, in the appointment of Subramanian.
“The unknown person according to Ramkrishna was a spiritual force that could manifest itself anywhere it wanted and did not have any physical or locational co-ordinates and largely dwelt in the Himalayan ranges,” the Sebi order had said.
Since the order, the CBI and IT are both investigating the NSE co-location case and last week the CBI arrested Subramanian in connection with its probe.
Tyagi said the Sebi order on Ramkrishna was delayed, due to the Covid-19 pandemic. He, however, said the delay was not intentional.
On the issue of the recent order of the regulator making separation of the post of chairman and managing director at listed companies voluntary instead of mandatory, Tyagi said Sebi gave four years to listed companies to comply with the norms. However, only 46 per cent had complied with it till now and there was no point pushing the issue further.
“We have to live in a practical world and can push only to an extent. So we made it voluntary and I think that the shareholders and stakeholders should now ask for a seperation and push for it,” said Tyagi.
Tyagi said over the years, the economy has shifted to the capital markets and Sebi’s importance has grown. He said Sebi needs to improve its enforcement as a number of old cases are still pending with the regulator. He also said Sebi needs to develop the bond market quickly.