CBI questions former NSE chief, expands probe

“The CBI is today interrogating Ramakrishna in Mumbai and has issued a look-out circular against Ramakrishna, Anand Subramaniam and Ravi Narayan (former managing director of NSE). This is an extension of the FIR of 2018 in the light of recent facts that have come to the fore as per the order of SEBI.”

People named in the look out circular are not allowed to go out of the country.

A person with knowledge of the matter said on the condition of anonymity that the investigation is still in its final stages and some more people will be called for questioning in Delhi and Mumbai next week.

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 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 confined to the original complaint.

In a written reply to Parliament in July, the government said the CBI investigation was still on.

Recently, the agency also submitted a status report on the investigation to the High Court.

“These new facts uncovered in the SEBI order are being used by the agency to broaden its investigation. Leakage of sensitive information by Ramakrishna is one of the most serious offences. The CBI is equipped to verify whether there is any financial loss to the institution and the exact identity of the recipient of the data,” said the person above.

In the SEBI order, Ramakrishna was accused of sharing confidential information about NSE to an unidentified person, who was identified only as ‘Himalayan Yogi’.

The market regulator in its order also said that it was involved in an alleged money-making scheme with Subramaniam, former chief operating officer of NSE and an unidentified third person, when it hired Subramaniam.

This was the second action by the CBI in two days against Ramakrishna, whose residence was searched by Income Tax officials on Thursday.

A person privy to the searches at Ramakrishna’s residence said, “During the searches, the officials tried to understand that the laptop from which the mails were sent to an unidentified third person was treated as e-waste. Why was it destroyed?