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Anand Subramanian Arrested in NSE Scam Case-CBI

According to sources, the Central Bureau of Investigation (CBI) detained Anand Subramanian, the former group operating officer of the National Stock Exchange (NSE), in Chennai late Thursday night, just days after questioning him.

According to officials, Subramanian was considered to be evasive with his statements to the investigators, prompting the CBI to arrest him. The arrest was made in connection with the co-location fraud, for which an FIR was filed in May 2018, when discoveries regarding irregularities at the nation’s major stock market surfaced.

On April 1, 2013, Subramanian received a salary of Rs 1.68 crore per year to join the NSE as a chief strategy advisor. His annual pay would be less than Rs 15 lakh.

For working 4 days per week as a consultant, Subramanian’s income increased to Rs 4.2 crore in much less than 3 years. From April 1, 2015, Subramanian was re-named group operational officer and advisor to the MD. However, the exchange never identified him as a key management person.

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The NSE, Ramkrishna, and Narain were all fined by Sebi for failures in governance in the renting of Subramanian. Ramkrishna was ordered to pay Rs 3 crore, while Narain, Subramanian, and the NSE were each ordered to pay Rs 2 crore.

For the next 3 years, Ramkrishna and Subramanian are prohibited from collaborating with a Sebi-registered intermediary or any market infrastructure institution in any capacity. The time limit for Narain was two years.

Sanjay Gupta, MD of OPG Securities, was the CBI’s four-year-old FIR target. It also implicated his brother-in-law Aman Kokrady and Ajay Shah, an NSE data expert, researcher, and unnamed NSE and Sebi officials for their roles in the scandal.

The NSE used the so-called tick-by-tick (TBT) architecture at the colo facility from June 2010 to March 2014. TBT sequentially disseminated data feed, prioritising trading members (TM) who were the first to link to the colo server.

Since April 2014, the market regulator has ordered OPG Securities, Gupta, and 3 others to forfeit Rs 15.6 crore, with 12% each annum. All of them have appealed the order to the Securities Appellate Tribunal, which is now hearing the case.

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