As expected, the CBI on Sunday (March 6) arrested former National Stock Exchange CEO Chitra Ramkrishna in the co-location scam.
She was arrested in Delhi and taken for medical check-up before being lodged in lock-up at the CBI headquarters. The CBI had grilled Ramkrishna for three days in February and carried out searches at her residence on the 24th and 25th of that month. Officials have said that she was not giving proper responses to queries.
The investigation is about the alleged role of the then senior NSE officials who were looking into the co-location facility which is understood to have given “unfair advantage and wrongful gain” to certain stock brokers including OPG securities, an accused in the case, at the cost of others.
The officials said co-location facility in NSE was a “major policy decision” in which the then MD and CEO and other senior officials would have played “decisive role”. The CBI probe has shown that Ramkrishna was appointed joint MD in 2009 and remained in the position till March 31, 2013, with the power of DMD.
Ramkrishna got elevated as MD and CEO on April 1, 2013. It was during this period that co-location facility was started by NSE, the CBI has alleged. In the co-location facility offered by NSE, brokers could place their servers within the stock exchange premises giving them faster access to the markets. It is alleged that some brokers in connivance with insiders abused the algorithm and the co-location facility to make windfall profits.