Anand Subramanian: The Central Investigation Agency (CBI) has arrested a former group operating officer of the exchange for his involvement in irregularities in the colocation facility of the National Stock Exchange (NSE) between 2010 and 2015. The main allegation in the colocation controversy is that some brokers were given illegal early access to price feeds broadcast by the exchange, giving them an advantage over the rest of the market.
Who is Anand Subramanian
Anand Subramanian is related to Chitra Ramakrishna, former CEO and MD of NSE, through family ties. He was working as a mid-level executive in a subsidiary of Bomer Lawrie until 2013.
How to get job in NSE
Ramakrishna had brought in her in April 2013 as Chief Strategic Advisor to MD.
what was unusual in his appointment
For this, the Human Resource Department of NSE was not consulted. Advertisement for the post of Chief Strategic Adviser has not been issued, nor has any other person been considered for the post. Subramanian was paid an annual package of Rs 1.68 crore, which was much higher than the Rs 15 lakh he was getting in his previous job.
Anand Subramanian arrested in NSE Colocation Case, CBI’s big action
He was interviewed for appointment only by Ramakrishna. Subramanian’s compensation was increased arbitrarily over the years. Subramanian got an annual package of Rs 4.21 crore in FY16 as a consultant. This compensation was more than what many top senior executives of the exchange were getting. Despite his seniority, Subramanian was not appointed as the Key Management Personnel (KMP).
Why is Subramanian in news
During the investigation related to the colocation facility of NSE, several emails came to the notice of SEBI in which Ramakrishna had sent confidential data related to the exchange to the email id- [email protected].
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On enquiry, Ramakrishna said that this email id belonged to a Siddha Purush/ Yogi, who mostly lives in the Himalayan hills. He said that he is the spiritual force who has been guiding him for 20 years.
So who is behind the email id [email protected]?
According to a forensic audit by consultancy firm E&Y, it was Anand Subramanian himself, who was giving instructions to Ramakrishna.
EY’s conclusion was based on the fact that (1) Skype accounts named “anand.subramanian9” and “sironmani.10” found on Subramanian’s NSE desktop were configured with Skype application data and email id ‘[email protected]’ and Subramanian’s mobile phone, as well as (2) document properties in some emails sent from the email id [email protected] indicated ‘Author’, ‘Last Modified By’, ‘Created’ and ‘Last Modified’ ‘ (date/time) as Mr. Subramanian.
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Subramanian’s reaction
Responding to SEBI’s show cause notice, Subramanian said that he was never directly or indirectly a party to colocation operations. He was never appointed as the Key Management Personnel (KMP) and was involved in the regular operations of the Exchange and the Exchange regulatory functions.
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