NSE co-location case: Enforcement Directorate may book OPG Securities for illegal overseas trade

The CBI’s FIR the NSE co-location is outing skeletons in the cupboard, perhaps more than what the authorities at OPG Securities would have imagined. CBI’s glare notwithstanding, the Enforcement Directorate is likely to register a case against the broking firm for alleged illegal trading in overseas markets such as Dubai and Singapore.

ED officials are perusing the FIR which mentions that OPG Securities has been illegally trading in Dubai, Ghana, Singapore, Hong Kong, and China. While it states that owner Sanjay Gupta controls several entities in Dubai, a source privy to the developments told Moneycontrol, “Gupta is running a franchise of a Mumbai-based school in Dubai.”

“Gupta trades in equity and has business interests in commodities in overseas markets as well,” another source said, alleging that it is likely that Gupta and his brother-in-law Aman Kokrady have misused RBI’s Liberalised Remittance Scheme. LRS norms do not allow remittances for trading on the foreign exchange markets.

As per CBI FIR, Gupta and Kokrady raised money from overseas. A source close to the development told Moneycontrol “Enforcement Directorate is likely to scrutinise the books of OPG Securities before taking a call whether to register a case.” Due to such trades, a Bangalore-based broking firm and the main beneficiaries of co-location case and a major player in securities and commodities are under the scanner.

Meanwhile, the CBI is expected to soon quiz Gupta in next few days. “CBI will start questioning of those named in the FIR, including Sanjay Gupta in next few days. Thereafter, the agency will call NSE and the Securities and Exchanges Board of India officials.”

The Income Tax Department has already conducted searches at the premises of OPG Securities, NSE’s employee Suprabhat Lala, one Ajay Shah and former NSE managing director Chitra Ramakrishnan.