NSE Scam: The CBI has arrested Chitra Ramakrishna, former CEO of National Stock Exchange (NSE) in the co-location scam case. Earlier on Saturday, a Delhi court had rejected the pre-arrest bail plea of Ramakrishna in the NSE co-location case. The former head of NSE is under investigation for allegedly sharing sensitive information about the exchange with a ‘Himalaya-based Yogi’.
Who are Chitra Ramakrishna and Anand Subramaniam? (Who is chitra ramkrishna and anand subramanian?)
Chitra Ramakrishna was the CEO and MD of the National Stock Exchange from 2013 to 2016. In 2013, he was handed the CEO position. However, in 2016 he was expelled from NSE after misusing his position and his name being linked to a scam. Chitra is accused of taking many such decisions during her work, which was not related to the interest of the stock market. One of them was the appointment of Anand Subramaniam, for whom Chitra had prepared an officer-level post in the NSE. Also, Chitra promoted Anand Subramaniam every time during his tenure. Anand Subramaniam used to work in a company named Balmer & Lawrie before joining NSE. Where his salary was only Rs 15 lakh per annum and had no experience in the stock market and related work. Despite this, Anand Subramaniam was given a salary package of Rs 1.68 crore.
NSE was running on the orders of ‘Yogi’ sitting on the Himalayas?
Chitra Ramakrishna had been taking advice from a Baba in her important business decisions for many years. One such baba (yogi), who lived in the Himalayas and used a mail ID bearing the names of the three Vedas. This Baba used to give instructions to Ramakrishna on the mail and decisions were made. The special thing is that Ramakrishna never met this yogi, but he was talking to this yogi on mail for almost 20 years. Taking action in this matter, SEBI has imposed a fine of Rs 3 crore on Ramakrishna, Rs 2 crore on the National Stock Exchange. Apart from this, NSE was barred from introducing any new product for six months. Also it was banned from raising money for 6 months.
What is co-location issue?
Selected brokers were unfairly benefited in the NSE co-location scam. According to investigative agencies, it was given access to co-location facilities to benefit a brokerage firm named OPG Securities. The brokers present in this facility get all the data much earlier than the rest.