NSE Co-Location Scam: CBI Arrests Anand Subramanian In Chennai

NSE Co-Location Scam: In the first arrest in the case, Subramanian was held from his Chennai home on Thursday night. He will be taken to the agency's headquarters in Delhi

File Photo: PTI

New Delhi: The Central Bureau of Investigation (CBI) arrested Anand Subramanian, NSE's former group operating officer and advisor to MD Chitra Ramkrishna, in Chennai in connection to the NSE co-location scam.

Subramanian was held from his Chennai home on Thursday night, according to the news agency ANI.

The investigation agency made its first arrest in the case, as per ANI. He will be taken to the federal agency's headquarters in Delhi where he will be produced before a local court for custody.

Subramanian’s arrest came after he failed to cooperate in the agency's ongoing probe. Subramanian remained the chief strategic advisor from April 1, 2013, before he was re-designated from April 1, 2015, until October 21, 2016.

Former CEO and MD of National Stock Exchange (NSE) Chitra Ramkrishna came under scrutiny after Sebi issued an order charging her and others in a matter of governance lapses in the appointment of Anand Subramanian as a chief strategic advisor and his re-designation as group operating officer and advisor to MD.

In its FIR the investigation agency said, "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."

It has been alleged that she was steered by a Himalayan yogi in the appointment of Anand Subramanian as NSE's group operating officer and advisor to the managing director. Ramkrishna was the MD and CEO of NSE from April 2013 to December 2016.

The Sebi has imposed a penalty of Rs 3 crore on Ramkrishna and her associates, simultaneously restraining her from associating with any market infrastructure institution or any intermediary registered with the Sebi for a period of three years.