The CBI has arrested Anand Subramanian, a former chief operating officer of the National Stock Exchange (NSE) group, following his questioning in a 2018 case related to alleged abuse of the exchange’s server architecture for allowing a private company to access data before other brokers. .
“Mr. Subramanian was arrested in Chennai on the night of February 24. He was interrogated earlier for three days,” an agency official said, confirming the development.
The CBI collected the relevant documents from the Mumbai office of the Securities and Exchange Board of India (SEBI) and also filed the statements of former NSE managing directors Chitra Ramkrishna and Ravi Narain a few days ago after circulars were issued monitoring. against them and Mr. Subramanian.
In May 2018, the CBI had filed the first information report against OPG Securities, which is a securities broker, and others. Unknown SEBI and NSE officials were also under the scanner for collusion.
As alleged, the company had obtained illegal preferential access to the market data feed from the exchange’s server, through an algorithmic trading software package named “Chanakya”, before other brokers. During the 2010-2012 period, the company gained access to the NSE server architecture through a “colocation” facility, which allowed it to first connect to the server before other brokers.
On February 11, SEBI had imposed a sanction on Mr. Subramanian and the two former managing directors of NSE for several violations, including irregularities in his appointment as chief strategic adviser and his reappointment as director of operations of the NSE. group and adviser to the then managing director of the stock exchange.
According to the SEBI order, Mr. Subramanian also knew the unknown “yogi” with whom Ms. Ramkrishna had shared internal NSE documents and on whose instructions she made various decisions. He was one of the main beneficiaries of the yogi’s alleged recommendations to him.
In January 2013, Mr. Subramanian was offered ₹1.68 crore for the position of Chief Strategic Advisor of the NSE, when his last salary was ₹15 lakh at a state-owned company. He got raises in quick successions and his pay had risen to around ₹5 crore by 2016. During the vetting period, he also made several overseas visits.
Earlier, the Income Tax Department had raided the premises of Ms Ramkrishna and Mr Subramanian in Mumbai and Chennai on suspicion of tax evasion.