Ravi Narain: CBI questions former NSE CEO Ravi Narain over abuse of colocation facility by broker

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The CBI has questioned former Nation Stock Exchange CEO Ravi Narain as part of its ongoing investigation into the alleged abuse of a colocation facility by an NSE stockbroker, it said on Sunday. officials. CBI investigators fired several pointed questions while recording Narain’s statement about the colocation facility and the operation of the exchange, they said.

Narain, who appeared before CBI investigators in Delhi on Saturday, could be summoned again for further questioning, they said.

On Friday, the agency interviewed former NSE CEO Chitra Ramkrishna in connection with the case.

The agency also issued surveillance circulars against Ramkrishna, Narain and former COO Anand Subramanian to prevent them from leaving the country.

The central polling agency had hired stockbroker Sanjay Gupta, owner and promoter of Delhi-based OPG Securities Pvt. Ltd, in 2018 for allegedly making gains by gaining early access to the exchange trading system, they said.

The agency was also investigating unidentified officials from the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE), Mumbai and other unknowns.

“It was alleged that the owner and promoter of said private company misused NSE’s server architecture in a conspiracy with unknown NSE officials. It was also alleged that unknown NSE officials, Mumbai, had provided unfair access to the said company using co-location during the period 2010-2012 which allowed it to first connect to the Stock Exchange’s exchange server which helped to obtain the data before any other broker in the market,” the CBI alleged in the FIR.

Narain served as Managing Director and CEO of the exchange from April 1994 to March 2013. Subsequently, he was appointed Vice Chairman in the non-executive category of the NSE Board of Directors from April 2013 and the remained until June 2017.

As part of the colocation facility, the NSE allowed brokers to place their servers in the NSE’s data center for a fee, allowing them to have faster access to the price feed distributed by the exchange.

Ramkrishna made headlines after Sebi on February 11 said she was led by a yogi, dweller in the Himalayan ranges, when Anand Subramanian was appointed as the director of operations of the discussion group and advisor to the Director General (MD).

The Securities and Exchange Board of India has charged Ramkrishna and others with alleged governance failures during Subramanian’s appointment as chief strategic adviser and his reappointment as group chief operating officer and adviser to MD .

Sebi fined Rs 3 crore on Ramkrishna, Rs 2 crore each on National Stock Exchange (NSE), Subramanian, former NSE MD and CEO Ravi Narain, and Rs 6 lakh on VR Narasimhan, who was the director of the regulation and compliance. officer.

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