This is the second high profile arrest of former MD and CEO Chitra Ramakrishna in the NSE co-location case. Earlier in the last month, former group operating officer of NSE Anand Subramaniam was arrested.
The CBI on Sunday arrested Chitra Ramakrishna, former Managing Director (MD) and CEO of National Stock Exchange (NSE) in the co-location scam case. The investigating agency was interrogating him for 3 days in the NSE co-location case. The investigating agency says that she was not cooperating in the interrogation, after which she has been arrested. Chitra will be produced in Rouse Avenue Court on Monday where the CBI will seek remand for further questioning.
second major arrest
This is the second high profile arrest in this case. Earlier in the last month, Anand Subramaniam, former group operating officer of NSE and deputy of Chitra Ramakrishna, was arrested. He was arrested by the CBI from Chennai in the NSE case. It is believed that after these 2 arrests, some important revelations can be made in this case.
Chitra Ramakrishna is also under the scanner of SEBI
Chitra Ramakrishna is also under the scanner of market regulator SEBI. Chitra is accused of operating the National Stock Exchange and sharing sensitive information at the behest of Himalayan Yogi. The CBI has also questioned former NSE CEO Ravi Narayan in connection with the ongoing probe into the alleged misuse of co-location facility by an NSE broker.
Officials said that she was not giving proper answers in the interrogation. He said the central probe agency also took the services of a senior psychologist from the Central Forensic Science Laboratory, who also interrogated him. Officials said the psychologists had also come to the conclusion that the agency had no option but to arrest them.
What is co-location scam
Some brokers of the country’s major National Stock Exchange, the center of share buying and selling, were given such a facility, so that they would get information about the prices of shares in comparison to the rest. By taking advantage of this, they were making huge profits. They were given direct access by co-locating the server with the help of insiders. The scam amount is estimated to be Rs 50,000 crore in 5 years.
Chitra became the NSE chief in the year 2013
Chitra Ramakrishna is a Chartered Accountant (CA). He started his career with IDBI Bank in the year 1985. He also worked in SEBI for some time. She was in the lead role since the inception of NSE in 1991. Chitra was among the 5 people led by NSE’s first CEO RH Patil who were selected to create a transparent stock exchange after the ‘Harshad Mehta scam’. After the end of Ravi Narayan’s tenure in 2013, Chitra was made the chief of NSE for 5 years.
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