According to reports, Delhi-based Link Investment Trust, Mauritius-based Bisque Limited, and prominent venture capital company Peak XV Partners intend to offload Awfis shares valued at INR 583 Cr. The three investors will collectively offload a 12.2% interest, or 85.8 lakh shares, in the flexible workspace solutions company through a block deal, according to a media outlet, which cited sources. The investors will offload the shares for INR 680 each. Compared to the stock’s closing price of INR 717.05 on 10 December, this indicates a 5.2% discount. IIFL Capital Services and ICICI Securities are the deal’s book runners.
As of September 2024, Bisque and Link Investment Trust owned 14.38% and 0.36% of Awfis, respectively, while promoter Peak XV owned 10.92% of the coworking space provider. Awfis’s stock has increased by more than 70% since its launch in May, although it has decreased by 7.5% in the last month.
Brokerages Continue to be Bullish on the Company
Up to five analysts that follow the company have a “BUY” rating on the stock, indicating that brokerages are still positive on the business. The optimistic forecast is primarily due to Awfis‘s quick expansion and acquisition of new office space. The company said last month that it would develop and oversee the National Stock Exchange’s 1.65 lakh square feet of office space in Mumbai. Rounak Real Estate Consultants, a company that specialises in high-value real estate advice services, helped to facilitate Awfis’ collaboration with the NSE.
Amit Ramani founded Awfis in 2015, and as of March 2024, it has 181 facilities, over 1.1 lakh seats, and 5.6 million square feet of billable space, making it the largest flexible space operator in India. The business began as a coworking network before branching out into the market for tech-enabled workspace solutions.
Awfis Financial Dynamics
In Q2 of the fiscal year 2024–2025 (FY25), it posted a consolidated net profit of INR 38.67 Cr. In Q2 of FY24, on the other hand, it reported a net loss of INR 4.34 Cr. During the reviewed quarter, operating revenue increased 40.46% from INR 208.15 Cr in Q2 FY24 to INR 292.38 Cr. On the BSE, Awfis’s shares ended on December 10, trading session 0.15% lower at INR 716.95.
According to Amit Ramani, chairperson of Awfis Space Solutions, the recently signed NSE contract will help the company’s income in both the current fiscal year and the fiscal year 2025–2026. Ramani had told a media outlet that the contract would “certainly help” with the 30% revenue projection that the company had provided for FY25.
Awfis and Nyati Group also collaborated in August to build an extra 3 lakh square feet of Grade-A workspace. It intends to open first-rate flexible workspaces in the prestigious commercial buildings “Nyati Empress” in Viman Nagar and “Nyati Enthral” in Kharadi, both owned by the Nyati Group.
The National Stock Exchange of India (NSE India) and Zomato, led by Deepinder Goyal, have teamed up to encourage financial literacy among its delivery partners. As part of the collaboration, Zomato and NSE will conduct financial literacy seminars around India to teach the delivery partner community the ins and outs of managing personal finances.
I am pleased to announce our collaboration with NSE India as a measure to raise financial awareness among delivery partners onboarded on Zomato. To teach the delivery partner community the ins and outs of managing personal finances, we will collaborate to conduct financial literacy courses throughout India, Goyal posted on X.
First Workshop in Hyderabad
On October 22, 2024, the inaugural financial literacy training took place in Hyderabad, Telangana. More than 2,000 delivery partners voluntarily participated in the event, Goyal said. According to Goyal, these programmes are specifically designed to meet delivery partners’ requirements.
The goal of these financial literacy workshops is to provide partners with the fundamental knowledge and abilities needed for effective money management, saving, and growth. “I hope these sessions act as a foundation for all our delivery partners to manage, save, and grow their finances and assist them on their path to financial independence,” Goyal noted further.
Expanding Workshops and Other Initiatives of Zomato
Zomato’s extensive network of delivery partners will be able to access financial literacy as the courses progressively spread to further Indian cities. NSE India plays a crucial role in the collaboration because of its extensive background in financial education and awareness initiatives.
In addition to prioritising financial literacy, Zomato has been tackling food waste by introducing the creative ‘Food Rescue’ project. Due to the monthly cancellation of over 4,000 orders, a significant quantity of food was at risk of going to waste. Zomato responded by creating a system that enables neighbouring customers to purchase cancelled orders at significantly reduced costs. In addition to reducing food waste, this programme gives consumers access to reasonably priced meals. Orders that are cancelled are shipped in their original, untouched packaging.
The company tackles two challenges by giving customers affordable options and reducing food waste by supplying them with high-quality, discounted meals. This action aligns with Zomato’s overarching goal of lowering food costs and increasing accessibility while implementing environmentally responsible procedures. Zomato’s growing vision for social responsibility is seen in both the ‘Food Rescue’ project and the financial literacy classes. By placing a high priority on sustainability and financial education, Zomato not only helps its delivery partners become financially independent but also leads by example in the collaborative economy.
NSE or the National Stock Exchange is one of the most famous institutions in India. As the name suggests, it is the National Stock Exchange of India, which is one of the apex institutes for investors in the Indian land. It is prestigious and holds upright the fundamentals and morals of the investors. The existence of the NSE can be attributed to some people and Chitra Ramkrishna was one of such names that come together with the stock exchange. Ramkrishna was selected to create NSE from scratch and has served as the CEO of NSE between 2013-2016. However, it is the co-location scam case of the NSE that she has now taken the centre stage of.
There are some people who are always present in every institution who try to manipulate the power and authority given to them in ways that are unethical or corrupted. They can be found in private, as well as public bodies. They can be found in banks, formal institutions, government propagated social institutions, These manipulators are present in almost every organisation you can think of.
There will always be people like these who try to manipulate the general public with the use of their authority or power. No institution is left without these people, even the NSE. There is a curious case of the National Stock Exchange with a person who used her power to do some fishy things. The case came out in the news and got a really big headline. However, most people still don’t remember the case in its entirety.
Here, in this article, we will see who was the fraudster behind the National Stock Exchange and what were the allegations that were posed to her. There are many twists and turns in its story that can even make a good story plot. Let us see how the case started and then slowly unfolded before the eyes of the law. Let’s unfold the complete Chitra Ramkrishna and NSE co-location case.
A Brief about Chitra Ramkrishna NSE Co-location Case
Before we go deep into the series of events that led to the eventual reveal of the big case, let us see the case at a glance. Here we will be discussing, what according to the news, the story was and how the case unfolded before everyone and how people are reacting to it. Let us see what was the issue that caused the fire to ignite. So this here is the co-location case in brief.
The National Stock Exchange, which is one of the oldest stock exchanges in the world, took a toll on its MD and CEO. Chitra Ramkrishna, who is the Ex-Managing Director and the Former Chief Executive Officer of the National Stock Exchange was accused of misusing her power.
It was alleged that she used her power and authority in the NSE to make some inapt appointments, which eventually lead to disruption of secrecy of the exchange. It was also said that there was an information leakage, which was to be concealed but she failed in doing so.
Another claim was that she was the one who made some incorrect and misleading submissions to the SEBI. The Securities Exchange Board of India was also seen stating that Chitra’s spiritual guru influenced her in doing the actions she was accused of. The ‘Himalayan Yogi’ mentioned was unnamed and unknown to the news and the media. All these were the claims that clouded the sky for Chitra Ramkrishna in the past.
The consequences of these actions were quite easy to see. The CBI or the Central Bureau of Investigation was the body that questioned her after the acquisitions and found out various fishy arrangements.
The CBI, during its enquiry, also issued some circulars against the Ex-Chief executive officer, Ravi Narain, who was her predecessor. It was also reported that the Central Bureau of Investigation also ordered circulars against the former GOO (Group Operating Officer), Anand Subramanian.
Who is Chitra Ramkrishna?
Chitra Ramkrishna is not a familiar name but in the world of finance, she is really well-known as a person. She is the former Managing Director and the Ex-Chief Executive Officer of the National Stock Exchange. She started her career as a Chartered Accountant. As she started and sailed through her career, she brushed some finance in her life.
Chitra Ramkrishna
In 1985, she IDBI (Industrial Development Bank of India). As her career and life moved forward, she got a short and brief notice period at the SEBI. After that brief work at the Securities Exchange Board of India, she returned to IDBI after two years. This was the time near the beginning of the NSE. She was eventually picked by SS Nadkarni, who was the then IDBI chairman, to establish the National Stock Exchange from zero.
What are the Allegations Against Ex-NSE Chief Ramkrishna?
By now you must have got an idea about the person who is at the centre of this case. Now is the time to understand the case and the allegations it posed towards Chitra Ramkrishna.
Starting from the beginning, Chitra Ramkrishna was appointed as the Managing Director and the chief executive officer on the first of April, 2013. She was worthy of the title and the post and designation that she received.
After her joining as the MD and CEO of the National Stock Exchange, she thought of appointing a person as the CSO (Chief Strategic Officer) for the exchange. Mr Subramanian was the person who was chosen for the post and this decision shocked everyone.
The reason why the decision shocked everyone was that the person, or the newly selected CSO, Mr Subramanian had no clue what stock and the capital market was. He had no prior exposure to the world of capital markets. He was Vice President of a leasing and repair service at an enterprise called Transafe Services private limited, before joining as the CSO for the exchange.
The Securities Exchange Board of India mentioned in a document that the person chosen for the job role had no prior exposure to capital markets. The selection of this candidate is subject to raising all the eyebrows in the room. The consultancy position for which Mr Subramanian was selected did not suit his prior life.
More than this, Subramanian’s salary at his last workplace was Rupees 15 Lakhs, which was now raised to a whooping 1.68 Crore rupees. This jump in the salary of Mr Subramanian from the last workplace to the National Stock Exchange was unjustified and abnormal.
Not only this, he was asked to work four days a week with all the benefits multiplied on his behalf. After all the appraisals and all the multiplied performance ratings, his compensation rose to 4.21 crore rupees just within two years. After all the eyebrow-raising and the magical promotions, he was redesigned to work as the GOO (Group Operating Officer) and Adviser to the Managing Director.
All of this and in the research and investigation, it was found that the exchange had no vacancy for the appointment of a CSO. Yes, The exchange never needed a Chief Strategic Officer, it was never advertised.
Chitra Ramkrishna not only appointed a person as a CSO but she also compensated him with exaggerated numbers and metrics. Remember, this is happening at the National Stock Exchange. This is a huge blow to the regulations and regulators.
Another claim or allegation that Chitra faced was this. The SEBI found out that the former chief (Before Chitra) was also guilty of spreading secret information for the exchange out in the open.
The information which is being regarded as confidential includes, some financial documents, organisations working model, dividend payout ratio and the board meeting consultations. All of this information was leaked in some sense or the other, by the ex NSE Chief who was said to have been following orders of her spiritual guru who remains unknown at the moment.
Chitra Ramkrishna and the board of directors were found guilty of not informing the regulator about the doings and leaking in the organisation. The regulator, in reply, asked both Subramanian and Ramkrishna to surrender their designations. Subramanian left the office officially in October 2016, followed by the surrender of Chitra Ramkrishna in December 2016.
The former chief of the National Stock Exchange has been examined for the case that was resisted in May 2018. The central bureau of investigation took the matter into its hands and are enforcing whatever it can.
According to the investigations of the CBI, it was found out that, the former member of the board had got access to the back servers of the exchange. This point of contact with the servers led to the control and manipulation of confidential and important data on the servers. This led to something similar to ‘Insider trading’ in the stock market.
When information travels asymmetrically, or faster to some people, they can use it to earn some abnormal gains. The brokers held unfair access between December 2012 to May 2014.
“Stock exchanges as institutional mechanisms have an important role to play in ensuring the stability of the financial and economic system,” the Bombay HC order had said.
In that light, Ramkrishna as the then-NSE chief is accused of financial misleading, concealing of information, and improper conduct. She was arrested in the co-location scam case on 6 March 2022, Sunday evening.
The Penalties and Orders by SEBI
Watching all the fraud play unfold, SEBI or the Securities Exchange Board of India made some orders and punishments to the offenders. According to the orders of the Securities Exchange Board of India, Chitra Ramkrishna has been denied to deal in stocks.
She will never trade in any of the securities, intermediate or with any clearing corporation for a period of three years. She is also ordered to pay a penalty of 3 Crore Rupees for the damage that has happened due to the bad governance.
For the denied time of 3 years, Mr Subramanian was also ordered to restrain himself from associating with any sort of market infrastructure institution. He has to stay away from the world of the market for the specified time and he has been ordered to pay a fine/penalty of 2 crore rupees.
On the market organisation of the NSE, it was ordered that the National Stock Exchange will not launch a new product or service for the next six months. Moreover, the NSE has been directed to leave/forfeit the excess leave encashment (cash in lieu of leaves) in 1.5 crore rupees and the deferred bonus of 2.8 crore rupees that the exchange owed to Ramkrishna. The forfeited amount that the NSE ordered to leave was to be utilised in its investor protection fund trust.
Other than these two people who were the centre of the storm of the fraud? there were more. The other three people who were also involved in the events were also penalised. They include Mr Narain who was the then president, A Company Secretary named J. Ravichandran, and the former regulatory officer J Ravichandran of violating some sections.
Those violated sections included the 15HB of the Securities Exchange Board of India Act 1992. Section of 23A and 23H of the securities contract Act 1956. In this case, not just president Narain was penalised but also the whole exchange was penalised. Both Narain and the National Stock Exchange were penalised with a penalty of 1 crore rupees.
The Mysterious ‘Himalayan Yogi’
This is probably the most amusing character in the case. He is a yogi who was said to be the person who was influencing the minds of the accused people. Both the people, Ramkrishna and Mr Subramanian, were at the centre of the case of misleading and making some confidential information open to the public.
Both of these parties, even after the trials and all the investigations, believe that the yogi is real and legitimate. They were seen mentioning that the spiritual guru they were talking about was a ‘Siddha purush’ or a ‘paramhansa’, which means a truly accomplished (Enlightened) being.
According to the former NSE chief, the spiritual guru has no physical coordinates and it is impossible to trace him. He is a guru that can only be found after you manifest at your own will. She also said that she met him twenty years ago on the banks of river Ganga. The yogi then gave her an email address for contacting him in the future.
All these claims were baseless and proved to be guilty of both the parties at the National Stock Exchange. SEBI, however, denied believing that the spiritual guru was fake, in fact, it said that it was a real person and the erstwhile Exchange chief went on several vacations with the guru. This proves the fact that the yogi is a real and legitimate individual.
It is the entity that makes the whole story a crooked one. Especially in a country like India, where gurus and pundits are celebrated and worshipped like demigods, this case does not stand differently. If this yogi analogy is a lie in the case, then it is very cunning on the sides of both Ramkrishna and Subramanian.
Confrontation with the Yogi
The Ex-NSE chief Chitra Ramkrishna was accused of several major lapses at NSE, which is the largest of the stock exchanges in India, and accused of making monumental decisions on behalf of the organisation under the influence of a Himalayan Yogi. She was later arrested for the charges pressed against her on March 6, 2022, and was eventually sent to a seven-day CBI custody on March 7, 2022.
As far as the reports go from the CBI sources, the Himalayan Yogi has been identified to be the former Group Operating Officer (GOO) of NSE, Anand Subramanian, who has been recorded with evidence of over 2,500 email exchanges with Chitra.
In order to reveal some more details regarding the case, the investigating agency requested the court for some questioning and confrontation with Chitra. This led to the questioning of Chitra Ramkrishna with her former aide, Anand Subramanian by her side, however, this shockingly didn’t dig up more mud, instead, Chitra refused to recognise him.
As per the reports, the controversial appointment of Anand Subramanian as the Chief Strategic Adviser and his later elevation to the Group Operating Officer and Adviser to the MD were all prompted by the mysterious guru.
This was the NSE co-location case that involved Ex-CEO and MD Chitra Ramkrishna. It was curious to see that people at such a high latitude of responsibility and authority fall prey to some gurus. And who knows if the guru is a legit person or a mere proportion of fake images, or mirages created by the fraud minds.
Chitra Ramkrishna and Mr Subramanian were found guilty of deep corporate governance frauds, which led to their denial from the exchange and the market for three and two years respectively.
They were also ordered to pay a hefty penalty of crores. This case, which can also be a script for a movie, was a very interesting case. This shows how people at the top of some institutions can really be cunning, as opposed to their stature and the magnitude of responsibility that they have to bear.
FAQs
Who is Chitra Ramkrishna?
Chitra Ramkrishna is the Former CEO and Managing Director of the National Stock Exchange (NSE), who is currently identified as the center of the co-location case scam of NSE.
What has Chitra Ramkrishna done in the co-location scam case?
The former CEO and MD of NSE, Chitra Ramkrishna has been charged with some major governance lapses at the NSE by SEBI. She has been accused of taking some major decisions under the influence of a Himalayan Yogi.
Who is the Himalayan Yogi?
The CBI sources have identified this Himalayan yogi to be none other than Ramkrishna’s former aide and Former Group Operating Officer at NSE, Anand Subramanian. According to reports, the decisions of Ramkrishna were influenced by the Yogi.
Who is Anand Subramanian?
Anand Subramanian is the Ex-Group Operating Officer of NSE and the Former Chief Strategic Adviser and an Adviser to the MD of NSE. He is the one who is currently discovered to be the Yogi in the co-location scam.
What is co-location?
Co-location is a term that designates dedicated spaces in the exchange building, which are positioned next to the exchange servers. Co-location spaces witness high-frequency and algo traders who can place their systems or programs.
In co-location facilities, a third party can lease a rack/server space along with other computer hardware. These facilities extend a wide range of infrastructures like power supply, bandwidth, and cooling, which greatly helps in setting up servers and storage of data.
What is the co-location scam of the NSE?
The NSE Co-location scam is the recent market manipulation at the National Stock Exchange, which involves several top officials of the NSE including Chitra Ramkrishna and Anand Subramanian.
Who is the first woman MD and CEO of the National Stock Exchange?
Chitra Ramkrishna was the first woman MD and CEO of the National Stock Exchange.
Why was Chitra Ramkrishna arrested?
Chitra Ramkrishna was arrested by CBI on 6 March 2022 in the NSE co-location scam.
What is the current update regarding the co-location scam of NSE?
The former NSE Chief Chitra Ramkrishna has been arrested on March 6, 2022, and has been sent to a seven-day CBI custody on March 7, 2022.
Capital markets regulator the Securities and Exchange Board of India (SEBI) is considering accommodate various flexible proposals to moderate the listing of startups in the stock exchanges in the country. This will encourage domestic startups to go public.
Institutional Trading Platform(ITP) was put in place for amendments to SEBI Regulations in August 2015. As the framework failed to gain interest, the discussion paper was put in place to enhance interest amongst startups in July 2016 . However, due to loose market interest, amendment to the ICDR Regulations was not made.
In June 2018, SEBI formed a group with stakeholders to review ITP framework and identify areas which require further changes. Yet, the threshold norms for getting securities or shares listed was still very high. Thus, under normal condition for startup companies to list their securities was remotely achievable. Yet, the ITP did not gain the buzz it was expected when it was launched.
Considering this and potential of startups, on December 12, 2018, SEBI in its board meeting cleared the proposition for providing easy listing norms in cases of startups which are into intensive use of technology, information technology, intellectual property, data analytics, biotechnology, nano-technology and which add value to the product and services.
If this supposed move is implemented, it would facilitate entrepreneurs to class themselves as ordinary shareholders and relieve them of the mandatory three-year lock-in clause.
Also, if a Private equity firm is being reviewed as promoters of a company, eventually it will pull in a lot of fiduciary responsibilities and disclosure requirements. Besides, they will also be subjected to SEBI’s insider trading rules. Hence, the market controller might consider exempting promoters of their fiduciary responsibilities and permitting PE backers enough stakes in a firm to release them as promoters.
Due to the rigid IPO rules like one year locked in for pre-IPO investors after listing, three years of lock in period of 20% of promoters’ shares and requirement of onerous consideration for delisting itself as a promoter, Indian startups take the acquisition path for its departure.
Sandeep Parekh, founder, Finsec Law Advisors commenting on the possible amend said
Relaxing the promoter reclassification norms would be a move in the right direction as it would provide more flexibility to startups planning to list. These companies operate with completely different business models and hence need more lenient regulations. In order to mitigate risk of lenient regulations, the regulator could keep trading in these companies confined to wealthy investors and institutions.
Earlier this year, National Stock Exchange (NSE) was reportedly in a dialogue with SEBI to relax startup listing norms on its platform Emerge ITP, a regulated platform connecting growing ventures with potential investors with or without IPO.
Additionally, in a bid to bolster angel funding in the home grown startups,the SEBI board has approved the modification of the Alternative Investment Fund (AIF) for doubling the maximum investment limit.
Nitin Konde
