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Updated May 25th, 2022 at 19:44 IST

NSE co-location scam: ED questions Chitra Ramkrishna on 5 key factors as probe continues

The Enforcement Directorate (ED) sought answers from the former National Stock Exchange (NSE) Managing Director and CEO Chitra Ramkrishna on five key points.

Reported by: Ankit Mishra
ED
Image: PTI | Image:self
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In a significant development, the Enforcement Directorate (ED) sought answers from the former National Stock Exchange (NSE) Managing Director and CEO Chitra Ramkrishna on five key points amid the ongoing NSE co-location scam probe. The primary question was about the details of the manipulation of the NSE when Ramkrishna was managing the affairs at the bourse. The federal agency had asked how the co-location scam could take place when Ramkrishna was holding the post of CEO and MD of the NSE.

The investigators also inquired about recent revelations regarding alleged governance lapses in the appointment of Anand Subramanian as a chief strategic advisor and his subsequent re-designation as group operating officer and advisor to Ramkrishna when she was the NSE MD.

Chitra Ramkrishna moves Delhi HC challenging trial court order refusing bail

last week, former MD and CEO of NSE Chitra Ramkrishna moved the Delhi High court seeking bail after the same was denied by a trial court. 

On May 12, Judge Sanjeev Aggarwal of the trial court had refused to grant bail to Ramkrishna in the NSE scam, observing the magnitude of the allegations. "Considering the gravity as well as the seriousness, enormity, and magnitude of the allegations against the accused persons, as discussed above, no ground for their bail is made out at this stage. Both the above bail applications stand dismissed," the court had ruled.

The court added, "It appears that accused Chitra Ramkrishna prima facie seems to have been running the affairs of NSE akin to that of a private club; singer writer, Nobel Laureate Bob Dylan once said 'money doesn't take, it swears', which is a song of, 1964 song album 'It's Alright Ma I'm Only Bleeding', means that money not only has influence, but it has great influence, even a perverse influence on people."

"Financial world including The FIIs are waiting with bated breath for NSE to redeem itself so that they can fly to this country for investment in droves, which is at present, a brilliant destination for investment. With regard to affairs of NSE at the relevant time, it would not be out of place to observe herein that there comes a time in a lifetime of an institution, where it finds itself at crossroads, then it should take a path which is a right path to restore its glory, rather than burying the skeletons, which may later turn into Frankenstein monsters," the trial court judge concluded. 

NSE co-location scam

Chitra Ramkrishna was ousted from National Stock Exchange in 2016 for her role in the co-location and Algo trading scam besides abuse of power. On 17 February 2022, the Income Tax department raided her and Anand Subramanian, following the SEBI report revealing that she was guided by a spiritual guru for the last 20 years in key decisions on NSE.

The Securities and Exchange Board of India (SEBI) had penalized the NSE, Chitra Ramkrishna and Ravi Narain, and two other officials for lapses in hiring at the senior level. Ravi Narain was the MD and CEO of NSE from April 1994 to March 2013, while Ramkrishna was the MD and CEO of the NSE from April 2013 to December 2016. SEBI observed that NSE and its top executives violated securities contract norms relating to the appointment of Subramanian as group operating officer and advisor to the managing director.

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Published May 25th, 2022 at 19:43 IST

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