nse: CBI meets Sebi officials for information on NSE case

The Central Bureau of Investigation (CBI) met some Securities and Exchange Board of India (SEBI) officials over the weekend to discuss the findings of its investigation into the National Stock Exchange (NSE) colocation case, people with knowledge of the matter said. . He said the CBI team visited the SEBI headquarters in Mumbai to collect information from six to seven officials who had probed improper NSE access between 2015 and 2019.

It is learned that the agency has also collected some important documents related to the case. One person said it sought details that went beyond Sebi’s February 11 order, including the omission of NSE as well as former chief Chitra Ramakrishna sharing confidential information with an apparent mystic.

“Sebi officials were asked to give the timeline for the investigation, such as when the market regulator came to know about the various dimensions in the matter, the steps it took and when, and sought details from the NSE,” the official said. he said.

SEBI and CBI did not respond to queries. Officials said that while inquiring about various aspects of the recent SEBI order, the CBI also asked about the Yogi mentioned therein.

The agency is said to be tracking Guru’s email address mentioned in the forensic audit and Sebi has cited the same in its order.

audit Report

The regulator had appointed EY and Deloitte to probe the NSE colocation case. EY’s report in 2018 provided a detailed study of emails exchanged between Ramakrishna and an unidentified person. That audit report identified Yogi as Anand Subramaniam, a former operating officer of the NSE group, but the regulator said the evidence does not support that point.

Subramaniam was questioned by the CBI on Monday after questioning Ramakrishna and former NSE chief executive Ravi Narayan over the weekend. Sebi officials said there was some delay because the exchange took time to respond to its queries and also because the issue of colocation was complicated. However, after the forensic audit of EY in 2018, it looked into all the findings of the report, he told the CBI.

The regulatory authorities are also believed to have briefed the CBI about several orders issued in the case against the former NSE management and Delhi-based brokerage OPG Securities.

Another person said that based on the details collected, the federal agency may approach former and current NSE officials this week and go back to the regulator if needed.

Notably, the CBI filed its First Information Report against OPG Securities in 2018, naming its directors and unidentified persons belonging to NSE and SEBI. However, at that time, the investigation was limited to possible collusion with Broker Link and the former NSE management. The CBI had alleged that OPG Securities and its directors managed to manipulate SEBI’s probe against the role of touts in misusing the tick-by-tick (TBT) architecture of NSE servers by bribing regulatory authorities.

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