AMN
The Central Bureau of Investigation CBI has arrested NSE’s former group operating officer Anand Subramanian in the alleged irregularities in the stock market manipulation case.
He was arrested from his Chennai home late at night and being brought to the agency’s headquarters in Delhi. He was an advisor to the NSE’s MD Chitra Ramkrishna. Look-out circulars were issued against Anand Subramanian, Chitra Ramkrishna, and Ravi Narain as part of the investigation. The CBI is investigating the alleged unfair dissemination of information from the market exchange’s computer server to those of stock brokers.
Earlier this month, Market regulator Securities and Exchange Board of India SEBI had slapped a fine of 3 crore rupees on Chitra Ramkrishna for exchanging confidential information over emails with an unknown individual.
Ramkrishna, the former head of the country’s largest stock exchange, was accused of sharing information including the bourse’s financial projections, business plans and board agenda with a purported spiritual guru in the Himalayas, markets regulator Securities and Exchange Board of India (Sebi) said.
“The sharing of financial and business plans of NSE… is a glaring, if not unimaginable, act that could shake the very foundations of the stock exchange,” Sebi said in an order, imposing penalties on Ramkrishna, the bourse and other top former executives for the lapses.
Also Read: Sebi order reveals mysterious ‘Yogi’ as NSE puppet master
Ramkrishna and Subramanian were subsequently restrained from associating with any market infrastructure institution or any intermediary registered with Sebi, while Narain was barred for two years.
The regulator also directed the NSE to forfeit the excess leave encashment of Rs 1.54 crore and the deferred bonus of Rs 2.83 crore, of Ramkrishna, which was retained by the exchange and deposit the money to its Investor Protection Fund Trust.
The income tax department conducted searches at the Mumbai residence of Ramkrishna on February 17. The CBI also visited the Sebi office and collected documents pertaining to the case.