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In a recent hearing at the Delhi High Court, Chitra Ramkrishna, the former CEO of the National Stock Exchange (NSE), challenged the definitions of ‘public duty’ and ‘public servant’ under The Prevention of Corruption Act. Ramkrishna, who led the NSE from 2013 to 2016, is embroiled in a scandal involving alleged misconduct during her tenure.
The heart of Ramkrishna’s argument lies in the classification of private sector employees as public servants, which she deems unjust. Her counsel, Hariharan, highlighted that despite the NSE being registered under the Companies Act, these terms could inappropriately target individuals in the private sector. The legitimacy of the prosecution sanction against her is also under question.
The Central Bureau of Investigation (CBI), which filed charges against Ramkrishna in April 2022 for illegal gratification and criminal conspiracy, maintains a different perspective. The CBI cites a Supreme Court precedent stipulating that any form of government aid could render employees of an organization as public servants. This comes into play as the CBI investigates Ramkrishna for allegedly allowing certain brokers privileged access to sensitive market data and facilitating the improper dissemination of information from NSE servers to brokers between 2010 and 2014.
Justices Kait and Kaur have called for responses from both the Central government and the CBI on these matters. As part of the legal proceedings, both parties have been instructed to submit written arguments ahead of the next hearing scheduled for December 19. This case continues to draw attention due to its implications for corporate governance and regulatory oversight within India’s financial markets.
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