A special CBI court has refused to grant anticipatory bail to former National Stock Exchange (NSE) chief executive Chitra Ramkrishna in the NSE colocation case, CNBC-TV 18 reported on March 5.
Sources told the channel that the court held that no grounds were made out for grant of Ramkrishna’s anticipatory bail. The CBI also argued strongly against grant of protection to Chitra Ramkrishna, it added.
Ramkrishna didn't cooperate with the CBI officials during investigation and the agency had to rope in a senior forensic psychologist to extract the truth. The psychologist also observed that Chitra was evasive in her responses.
Ramkrishna shared details such as organisational structure, dividend scenario, financial results, human resources policy, response to regulator, and future projects with the 'yogi', according to CNBC TV-18.
Anand Subramanian was appointed as a consultant with NSE by Chitra Ramkrishna without following due procedure. Despite not having proper qualifications, he was being paid a very high salary.
The CBI began questioning Ramkrishna in connection with probe into certain irregularities in February. It issued look-out circulars against Ramkrishna, former NSE CFO Anand Subramanian and Ravi Narain for the investigation.
Ramkrishna and Subramanian have been restrained from associating with any market infrastructure institution or any intermediary registered with the Securities and Exchange Board of India (Sebi) for three years, while Narain has been barred for two years.
The market regulator said that despite being aware of the irregularities on the appointment of Subramanian, Narain and the NSE had not recorded the matter in the minutes of the board meeting in the name of confidentiality and sensitive information.
On February 17, the income tax (I-T) department conducted searches at Ramkrishna’s Mumbai residence. The search happened after Ramkrishna was penalised by the market regulator on February 11 for passing sensitive information to a yogi residing in the Himalayas.
The mysterious 'yogi' is under the Sebi scanner now and the market watchdog has claimed to crack the identity of the ‘yogi’ within 15 days.
The colocation case
The NSE colocation case refers to a series of events where certain private individuals and unknown NSE and Sebi officials were accused of preferential access to the NSE's server architecture and misuse of colocation facility.
The CBI on February 25 arrested Subramanian in connection with alleged favours to certain traders. The development came as authorities pressed ahead with an investigation into the case.
A whistleblower had written to Sebi in January 2015, explaining flaws in the NSE’s colocation system, and how some brokers had exploited those flaws in collusion with some employees of the NSE.
Subramanian was the chief strategic advisor from April 1, 2013 before he was re-designated from April 1, 2015 until October 21, 2016.
The Central Bureau of Investigation began questioning Ramkrishna in February. She was accused of sharing information, including the bourse's financial projections, business plans and board agenda with a purported spiritual guru in the Himalayas, 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.
Sebi said that the NSE had flouted the principles underlying the conduct of business of a stock exchange, pertaining to fair and equitable access to information. The NSE had failed to comply with the provisions of SECC Regulations in letter and spirit and Ramkrishna and Narain have been vicariously liable for the acts of omissions/ commissions committed by the exchange during the investigation period, the market watchdog said.
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