A zoom session :
Raghuvir Srinivasan – Editor
M Damodaran – Left SEBI 13 years before
Lokeshwarri SK – Associate Editor
Palak Shah – Senior Assistant Editor
JN Gupta -
We do not know how mighty the scam is and if at all there is a scam like the Himalaya’s.
Failure of Corporate Governance is for sure. Today you make a law, tomorrow people will find loophole.
Disagreeably shocked. Element of shock was huge. Colocation scams had discoveries, and there were findings of lapses.
Responsibility to ensure, adequacy and timeliness of information. Past performance is not a guarantee of future performances – MF term. Flower Vase director. Public Interest Directors role is to challenge the question of Board, they are for Public. Bright individuals at top position, temptations are huge.
Are there links to appointment without board approval, colocation scam? SEBI’s report doesn’t say any. But there are. Co-Location has started in 2009 before the new appointment, while the appointment was in 2013, Direct market access, Algo trading had started before that. Laying of fibre was done by Sampath, who was not in the list of service provider. As Strategic advisor and Operating officer, one would be driving; there is circumstantial evidence. Main leadership at NSC has changed, and they have said that better systems have to brought in place.
Who is the Yogi? We don’t have to worry. Chitra will answer. To take the story forward – Kuch tho hey kispa parda hey. Board of NSE is responsible for this cover up, as they knew about these. They not only remaind quite, but let her resign, with substantial amount paid to her. SEBI did not reveal many information. When Chitra was caught read handed – why did they not alert the govt. and investigative agencies, but covered up these? Colocation scam and Yogi Scam are two sides of the same coin. Information was shared with Ajay Shah and Susan Thomas by Ravi Narain and Chitra Ramkrishna. Suprabhat Lala, is BIL of Ajay Shah and Susan Thomas was the key in co-location scam.
SEBI kept asking – it was like pleading for information. It is time to visit the control processes, checks and balances. Culpable offence is the destruction of evidence which is committed by disposing of the laptop as E-waste.
• We can’t have same two persons in the position of power, for such a long time. Here two people were for 2.5 decades.
• We should not have the immediate predecessor in the position of power, as part of the board.
• Proper systems and it’s evaluation is needed. Even if it is not listed, they deal with so much of listed companies, and so should act with values. Systemic Integrity has to be restored.
Horse Man and Horse made mistakes; chariot is blamed. Horse Man and Horses are changed. Best systems, even if designed by God, but if the Poojari is corrupt, it is bound to fail. Appoint people who are willing to devote time and take risk. We can install fear but cannot install integrity. Integrity has to come from within. Let us not malign the institution, let us malign the people. There are learning everywhere and take away are important. Credibility must be restored. Confidence has to be regained. There will be conspiracy theories coming out. What went wrong, why did it go wrong, who was responsible, and How do we stop this? People seems to get out by doing fraud. Let SEBI be away from appointing Directors. There should be no room for conflicts. Semi regulators cannot be a profit making institutions. SEBI reforms are required, and arm itself with right kind of people to be on top of the job. Surveillance, investigation and Enforcement has to be enforced. Regulation is a function of law and accounting. There should be system, to have the right people in the system with right energy and expertise with the precision of a surgeon.
Will these effect Investments and markets? No, it should not. There is reputational damage, which should be fixed.
Before we can learn from this, and put in place systems, we need to get into the bottom of this. We need blessings of the Himalayan Yogi, to get to the bottom of this.
be-ḳhudī be-sabab nahīñ 'ġhālib'
kuchh to hai jis kī parda-dārī hai
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