The National Stock Exchange's (NSE) managing director and chief executive Chitra Ramkrishna, who abruptly exited the IPO-bound bourse on Friday, is believed to have taken the decision after the Board sought a justification from the management on appointments of various consultants in mid- and senior positions, with high salary packages.
She, however, cited "personal reasons" for the exit, a few weeks before India's biggest bourse was expected to flag off its proposed initial public offering.
After the NSE Board sought justification on hiring consultants on higher salaries, the management is believed to have failed to justify the move convincingly. Sources said this apparently created a rift between the Board and Ramkrishna. This turned out to be a key reason for her departure, said sources.
A questionnaire mailed to NSE did not elicit any response on Sunday.
At present, more than one dozen consultants are working in different departments at NSE. A source told DNA Money, "Actually, most of these consultants were hired on very high monthly fee as compared to employees who have been with the exchange for many years and have similar kind of experience. This created a constant rift between the consultants and the payroll employees."
It all started a few months ago when the Board raised eyebrows on the appointment of one of the consultants, following several anonymous complaints through e-mails and letters sent to the finance ministry and the market regulator Securities and Exchange Board of India.
The consultant had joined NSE a few years ago on a very hefty pay and was later confirmed as an employee of the exchange. He directly rose to the position of Group Chief Operating Officer, a position that is recognised as a key managerial person (KMP), as per the Sebi guidelines. It was alleged that the due procedure was not followed in the appointment. The consultant had resigned on October 24, 2016.
A source told DNA Money, "Of more than a dozen consultants are working in the exchange, some contracts are going to expire by the month-end. These contracts are unlikely to be renewed. However, the Board is in the process of providing them with an opportunity to join the exchange as an employee. If they do not oblige, they may cease to work with the exchange."
Ramkrishna's decision to quit comes almost a year before her tenure comes to an end in 2018. She was appointed as NSE head in April 2013 for a period of five years, replacing the then chief Ravi Narain.
The NSE Board will soon begin the exercise to find new managing director and CEO; it has already set up a three-member search panel, including non-executive vice chairman Ravi Narain, T V Mohandas Pai and the current chairman Ashok Chawla.
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