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Sanjay Gupta, Managing Director Of OPG Securities, Arrested By CBI In NSE Co-location Scam

The NSE co-location scam case dates almost a decade back when it was alleged that one of the trading members, namely OPG Securities was granted unfair access.

Image: PTI


In a major development, the Central Bureau of Investigation (CBI) arrested Sanjay Gupta, the managing director of OPG Securities in connection to the NSE co-location scam case on Wednesday. This came shortly after the CBI had identified the Delhi-based broker company among the key beneficiaries in the NSE co-location scam. 

CBI has also alleged OPG Securities of retaining huge undisclosed foreign transactions along with hawala deals, multi-crore cash payments, and several operations of cross-country trading servers with connection to the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and Multi Commodity Exchange (MCX).  

As per the latest information, Sanjay Gupta was arrested over similar allegations of having huge undisclosed transactions as well as hawala deals. Notably, he had earlier denied all the claims. 

He has been presently taken into custody and will be produced in front of the court on Wednesday. 

What is the NSE co-location scam case?

The case dates almost a decade back when it was alleged that one of the trading members, namely OPG Securities was granted unfair access to logging into the secondary server first and getting all the data before others in the co-location facility. This also enabled the algo trades of the member to remain ahead of others. 

Following this, the incident came to light in 2015 after a whistleblower’s complaint to the Securities and Exchange Board of India (SEBI), and Chitra Ramkrishna, who was managing the affairs of the NSE at that time, was ousted from her position for misusing her powers and for her role in the scam. 

In addition to that, SEBI also penalized the NSE, Chitra Ramkrishna, and two other officials in the matter. The CBI which has been probing the case since then had also booked stock broker Sanjay Gupta in 2018 for allegedly making gains by getting early access to the stock market trading system. 

 

Image:  PTI

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