A special court in Delhi has asked India’s premier investigative agency-the Central Bureau of Investigation and security market watchdog Securities Exchange Board of India, why both have failed to take any action main accused in co-location and algorithm scam.
“The conduct of the investigating agency CBI is most lackadaisical to say the least, as no action seems to have been taken against main beneficiaries of the present co-location scam and others for almost four full years, who seems to be enjoying merrily at the expense of common citizenry for the reasons best known. Further even SEBI despite being capital market watchdog has been too kind and gentle qua the accused persons in the present FIR /RC,” said special judge Sanjeev Aggarwal.
These observations were made in the order while rejecting the anticipatory bail application of the former managing director and CEO of NSE Chitra Ramakrishna.
The court also said that the magnitude of the NSE scam is huge. The co-location and algorithm scam reportedly took place between 2012-14. The court observed that in the “Present case huge loss of public money/ funds may be involved.. it needs to be viewed seriously and considered as grave and offence(s) affecting the economy of the country as a whole and thereby causing serious threat to the financial health of the country”.
On 11th February the SEBI made its final order public and found Chitra Ramakrishna and others guilty of misgovernance.
Chitra Ramakrishna was managing director and CEO of India’s biggest stock market from March 2013 till December 2016. She resigned citing “personal reasons”.
Last month the CBI had examined both Chitra and Ravi Narain multiple times. Ravi had the longest stint at NSE. First as MD and CEO from April 1994 till March 2013 and then as vice-chairman (non-executive) from 1st April 2013 till 1st June 2017 when he resigned.
It is the timing of Chitra’s joining at NSE as CEO and subsequent appointment of Anand Subramanian that is now under the scanner of the CBI. On her first day as MD and CEO at NSE Anand Subramanian was brought in as chief strategic adviser on 1st April 2013 on a salary of Rs 1.68 crores. Later he was re-designated as group operating officer and adviser from 1st April 2015 till 15th October 2016. His last drawn salary was Rs 4.2 crore.
Sources in the CBI said it is likely that Chitra will again be called in for examination. “The magnitude of the present case may be huge, as due to this financial skulduggery huge loss may have been caused to adherent stockbrokers, institutional investors, foreign institutional investors and honest investors, whose faith in this premier financial institution i.e. NSE may have been severely shaken and dented,” said the court.
