New Delhi: The CBI carried out searches on Saturday morning in the fraud case linked to the National Stock Exchange. The searches were carried out in Delhi, Mumbai, Noida, Gurugram among other places.
“CBI is conducting searches on brokers across 10 locations in Delhi, Mumbai, Gandhinagar and Kolkata. These brokers allegedly misused NSE’s co-location facility to gain an unfair advantage over the broader market. The searches are to ascertain any financial gains made due to this access,” an official said.
The central agency has filed a chargesheet against former National Stock Exchange (NSE) CEO and MD Chitra Ramkrishna and group operating officer Anand Subramanian in the case, the officials said.
They have both been accused of giving unfair access to NSE’s trading system to Delhi-based stock broker OPG Securities Pvt Ltd and its owner, Sanjay Gupta.
The probe has so far established that from 2010 to 2015, when Ramkrishna was managing the affairs of the NSE, OPG Securities, one of the accused in the FIR, had connected to the secondary POP server on 670 trading days in the “Futures and Options” segment.
Earlier this week, a Delhi court had denied Ramakrishna bail as the judge quoted legendary singer Bob Dylan.
“It appears that accused Chitra Ramakrishna, 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 talk, it swears’, which is a song of the 1964 song album ‘It’s Alright Ma I’m Only Bleeding’. It means that money not only has influence, but it has great influence, even a perverse influence on people,” special CBI judge Sanjeev Aggarwal said during the hearing.
The CBI filed a charge sheet against her last month. A report by market regulator SEBI in February had said that a “mysterious Himalayan yogi” was guiding the actions of Ramkrishna. While there has been speculation that Subramanian was the “yogi”, there has not been a confirmation from the CBI.
Subramanian was initially appointed as Ramakrishna’s advisor and later elevated to the top post.
“It was alleged that the owner and promoter of the said private company abused the server architecture of the NSE in a conspiracy with unidentified officials of the NSE. It was also alleged that unidentified officials of NSE, Mumbai had provided unfair access to the said company using the co-location facility during the period 2010-2012 that enabled it to log in first to the exchange server of the stock exchange that helped to get the data before any other broker in the market,” the CBI has alleged in the FIR, a report said.