NSE collocation case: CBI questions ex-group operations officer Anand Subramaniam

The Central Bureau of Investigation (CBI) has questioned former National Stock Exchange (NSE) group operations chief Anand Subramaniam in connection with the co-location case. The interrogation took place in Chennai.

According to the sources, documents from his residence were also seized.

Earlier, the investigative agency met with officials from market regulator SEBI last week in Mumbai in connection with the case of former NSE chief Chitra Ramkrishna, senior officials at the government told Business Today. current of the case.

The officials added that the CBI wanted to know more about the case and the recent SEBI order, which revealed how Ramkrishna shared confidential data and information about the exchange with an unidentified person, who she said was a spiritual yogi living in the Himalayas.

The CBI investigation was launched after recent SEBI findings.

Ramkrishna is being investigated for allegedly sharing sensitive information about the exchange with a “yogi who lives in the Himalayas”. The CBI had in a statement mentioned that the alleged unfair practices occurred between 2010 and 2015.

ALSO READ: Chitra Ramkrishna case: CBI meets with SEBI officials

The CBI had questioned former NSE CEOs Ramkrishna and Ravi Narain last week about “new facts” that surfaced in the damning report published by SEBI on February 11.

The SEBI order said it came across certain documentary evidence showing that Ramkrishna shared inside information including organizational structure, dividend scenario, financial results, HR policy and related issues, response to the regulator, etc. of NSE with an ‘unknown person’. by email between 2014 and 2016.

The market regulator accused Ramkrishna and others of alleged governance failures during Subramanian’s appointment as chief strategic adviser and his reappointment as group chief operating officer and adviser to the chief executive.

SEBI imposed a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on the National Stock Exchange (NSE), Subramanian and former Managing Director and CEO of NSE Ravi Narain, and Rs 6 lakh on VR Narasimhan, who was the director regulator and compliance officer.

The case is against a stockbroker who manipulated the NSE system with the help of senior officials at the time to gain early access to the markets when they opened. Sanjay Gupta (promoter of OPG Security Pvt Ltd), Aman Kokrady, his brother-in-law, and data scientist and researcher Ajay Shah have been named by CBI as defendants in the case, along with unknown NSE officials and of the SEBI.

The National Stock Exchange, the largest stock exchange in the country, reportedly rolled out colocation services in 2009-2010.

Colocation is a setup where the broker’s computer is placed in the same area where the exchange’s server is located. This gives brokers a speed advantage over other brokers. The broker whose computer is placed in the NSE server room has access to the market feed before other brokers, allowing him to make huge financial gains through stock trading.

(With contributions by Chetan Bhutani)

ALSO READ: Former NSE chief Ravi Narain interviewed after Chitra Ramkrishna

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