NSE co-location scam: CBI files chargesheet against Chitra Ramkrishna, Anand Subramanian

The Central Bureau of Investigation  (CBI) on Thursday filed the chargesheet against former NSE managing director Chitra Ramkrishna and the exchange's former group operating officer Anand Subramanian in the co-location scam case, informed CBI sources. This comes nearly a week after the Enforcement Directorate (ED) had conducted raids at multiple locations in the probe. 

The CBI had recently arrested former NSE Managing Director and Chief Executive Officer Chitra Ramkrishna and group operating officer (GOO) Anand Subramanian in this case.

NSE co-location scam

The CBI is currently investigating the inappropriate dissemination of information from computer servers to stockbrokers. In the co-location facility offered by the NSE, brokers could place their servers within the stock exchange premises providing them faster access to the markets. Some brokers in connivance with insiders allegedly manipulated the algorithm and the co-location facility to make profits. 

On March 24, a Delhi court had rejected the bail application of former group operating officer (GOO) of the NSE, Anand Subramanian. He was arrested by the CBI on February 24 and was remanded to custodial interrogation. He was then sent to 14-day judicial custody on March 9. On the other hand, on March 14, the judicial custody of Chitra Ramkrishna, former MD and CEO of the NSE was extended till March 28. She was arrested on March 6. 

On February 17, the Income Tax department had raided ex-NSE MD Chitra Ramkrishna and  Anand Subramanian, after the SEBI report had revealed that she had been guided by a mysterious spiritual guru for the last 20 years in key decisions on NSE. The SEBI had penalised the NSE, Chitra Ramkrishna and Ravi Narayan and two other officials for lapses in hiring at the senior level. Ravi Narain was the Managing Director and Chief Executive Officer of the NSE from April 1994 to March 2013, while Ramkrishna was MD and CEO of the NSE from April 2013 to December 2016. The market regulatory observed that the NSE and its top executives violated securities contract norms relating to the appointment of Subramaniam as group operating officer and advisor to the managing director.