Stressing that public sector entities eg LIC, SBI, and GIC hold a stake at NSE, the Central Bureau of Investigation has said that its own probe is not confined just to SEBI investigation in colocation and algorithm scam. For the first time the probe agency has said scope of its probe has been expanded.
While opposing the bail of Anand Subramanian, the CBI has made this written submission before the court. “The NSE deals with financials of investors and it’s under duty to protect the interest of investor particularly the public at large. Apart of above various large financial institutions and banks viz SBI, LIC and GIC hold stake at NSE .. release of this accused will hamper collection of evidence,” said the CBI.
Terming the hiring of Anand Subramanian as a chief strategic adviser at NSE as part of “pre-planned conspiracy” the CBI said both Chitra Ramakrishna and Anand knew each for long.
“When Chitra Ramakrishna was joint managing director from 2009 till 31st March 2013 ar NSE, colocation was conceptualised and implemented,” said the CBI.
During Chitra’s stint at NSE, Anand Subramanian, “was posted at NSE and holding a very important position and privy to sensitive information when colocation scam happened” said the CBI.
The CBI suspects the appointment of Anand Subramanian was a well-thought strategy. “He entered into a criminal conspiracy with Chitra Ramakrishna. And Chitra as part of the conspiracy illegally and arbitrarily appointed Anand Subramanian at NSE,” said the CBI.
During interrogation, Chitra denied knowing Anand. The CBI had stated this while asking for her custodial remand. However, the agency now says Anand knew Chitra prior to his appointment at NSE. His wife Sunitha was regional head of NSE Chennai since 2011.
The CBI has also claimed that Chitra had redesignated Anand Subramanian as group operating officer and adviser to MD from 1st April 2015. However, the powers given to him was akin to that of MD. She did not consult the board for this. With the elevation in post, Anand was privy to classified and confidential information about the working of NSE.
In May 2018, an FIR was filed in a colocation and algorithm case, OPG Securities was named as one of the accused. The CBI claims despite knowing that OPG Securities was getting preferential treatment no action was taken against it.
“Suspect trading firm OPG Securities connected to a secondary server for 300 days without any objection from NSE,” said the CBI. OPG Securities and other suspected security/ trading firms had a speed advantage of 10:1 compared to others which allowed them to make huge profits.
