I-T dept conducts searches at former NSE MD Chitra Ramkrishna's residence

Chitra Ramkrishna was the first woman managing director and chief executive officer of the National Stock Exchange (NSE). (Image credit: Facebook)

The income tax (I-T) department on February 17 conducted searches at the Mumbai residence of Chitra Ramkrishna who was managing director and chief executive officer of the National Stock Exchange (NSE), according to CNBC TV-18.

The search comes after Ramkrishna was penalised by market regulator Securities and Exchange Board of India (Sebi) on February 11 for passing sensitive information to a yogi residing in the Himalayas.

Also Read: NSE Scam: Insiders speak of a savvy Chitra Ramakrishna and a closely knit trio, dismissing the ingenue story

According to the Sebi probe findings, Ramkrishna, who quit in December 2016, shared certain internal confidential information of NSE like that on organisational structure, dividend scenario, financial results, human resource policies and related issues, response to regulator, etc. with the unknown person over email between 2014 and 2016.

The market regulator imposed a penalty of Rs 3 crore on her for sharing the information, besides irregularities in the appointment of a senior official Anand Subramanian, for which the NSE and senior management were responsible as well.

Also Read: Explained | The SEBI order against NSE, Ravi Narain and Chitra Ramakrishna

Ramkrishna said she was being guided by a yogi living in the Himalayas on decisions relating to Subramanian's compensation.

Subramanian was chief strategic advisor of NSE from 1 April 2013 and was re-designated as group operating officer and advisor to the managing director and chief executive officer from 1 April 2015 till 21 October 2016.

Additionally, a forensic audit by consultancy firm EY claimed Subramanian himself was the yogi directing Ramkrishna to take the aforesaid actions.

According to Sebi, the NSE and the board consciously decided not to report the matter to the regulator and keep it under wraps.