New Delhi: Anand Subramanian, former group operating officer at the NSE, was arrested by the CBI late on Thursday night days after he was questioned about his role at the country’s largest stock exchange.
“Subramanian was arrested by a team of officials in Chennai late on Thursday night. He will be produced in a competent court today,” a CBI official said.
CBI had earlier questioned Subramanian for three days ending the interrogation on February 21. It has already questioned former MD-CEO Chitra Ramkrishna and former CEO Ravi Narain. While Ramkrishna’s questioning took place last Friday, Narain was questioned last Saturday. The central probe agency had also put out notices against Subramanian amid probe over irregularities at the NSE (National Stock Exchange).
Earlier this week, a team of CBI also visited the Securities and Exchange Board of India (Sebi) office in Mumbai and collected documents related to the case.
The interrogations, according to CBI, were being made in light of a Sebi report that said Ramkrishna had been sharing confidential NSE information with a “Himalayan Yogi” and indicted her for Subramanian’s appointment in contravention of rules.
Ramakrishna was questioned for 12 hours by the CBI last week in the ‘tick-by-tick’ manipulation case – that pertains to the unfair dissemination of information from the servers of the exchange to those of the stock brokers.
Earlier this month, Market regulator Sebi (Securities and Exchange Board of India) had slapped a fine of ₹3 crore on Ramkrishna for exchanging confidential information over emails with this ‘yogi’, an unknown individual.
Several key decisions that she took as the NSE head between 2014 and 2016, a February 11 SEBI order revealed, were influenced by her interactions with this unknown individual.
A probe by the NSE later revealed that the email id in question was operated by Subramanian. He too was slapped with a fine of ₹2 crore.
Ramakrishna’s predecessor Ravi Narayan, the NSE’s former MD and CEO, was also asked to pay a ₹2 crore fine.
The CBI had put out lookout circulars against all three of them to stop them from leaving the country.
In 2018, the central probe agency had filed a case against stock broker Sanjay Gupta, owner and promoter of Delhi-based OPG Securities Pvt Ltd, for allegedly making gains by getting early access to the stock market.
“It was alleged that the owner and promoter of said private company abused the server architecture of NSE in conspiracy with unknown officials of NSE. It was also alleged that unknown officials of NSE, Mumbai had provided unfair access to said company using the co-location facility during the period 2010-2012 that enabled it to login first to the exchange server of the stock exchange that helped to get the data before any other broker in the market,” the CBI said in the FIR (first information report).
Ramkrishna was MD and CEO of NSE from April 2013 to December 2016, while Narain held that post from April 1994 till March 2013.