MUMBAI: The Central Bureau of Investigation arrested former NSE chief operating officer Anand Subramaniam late Thursday night, a person with direct knowledge of the matter said.
“The arrest, which took place after three days of continuous interrogation in Chennai, will be produced in a special court for custody,” the man said.
The matter pertains to improper access to NSE’s Colocation Platform or Algo Trading Platform. An FIR was registered in the case in May 2018. The original FIR was registered against Delhi-based brokerage firm OPG Securities and unnamed NSE and Securities and Exchange Board of India (SEBI) officials.
The so-called algo scam involved some brokers gaining an unfair advantage over others while accessing the NSE’s algo-trading platform, leading to unfair advantage or avoidance of loss.
The CBI had been questioning former NSE CEO Chitra Ramakrishna, former board vice chairman Ravi Naren since last Friday.
The person mentioned above said, “More arrests will be made in the matter.”
The original FIR was expanded in the light of recent facts that emerged after the SEBI order. The SEBI order alleged that the regime lapsed in hiring Subramaniam and that financial data of the exchange was leaked by Ramakrishna to an unidentified third person.
The investigation came after journalist Shantanu Guha Ray filed a Public Interest Litigation (PIL) in the Delhi High Court in August 2017, seeking the agency to widen the scope of its investigation into allegations of fraud and illegality in algo-trading.
In May 2019, the CBI submitted a status report to the Delhi High Court that its investigation was no longer limited to the original complaint.
In a written reply to Parliament in July, the government said the CBI investigation was still on.
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