New Delhi: The CBI has made substantial progress in the investigation of the NSE co-location case where it was found that certain stockbrokers were given preferential access to the trading system, Union Finance Minister Nirmala Sitharaman said in Rajya Sabha on Tuesday. She made the remark in a written reply to questions raised by M. V. Shreyams Kumar, MP of the Loktantrik Janata Dal.
The CBI had registered a case in relation to the incident in 2018 under several sections of the Indian Penal Code, Prevention of Corruption Act, 1988 and of Information Technology Act, 2000, she said. "The CBI investigation is still going on. CBI has informed that substantial progress has been made in the investigation of the case," stated Sitharaman.
She also said that for lapses relating to the matter, NSE’s former CEOs and top officials have been held responsible adding that monetary penalties and other restrictions have been imposed on them. "During the investigation in the matter, it was noticed that certain stockbrokers got preferential access to the trading system. For lapses in this regard, NSE, NSE’s former CEOs and top officials have been held responsible for breaches of the relevant provisions of Securities Contracts (Regulations) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and monetary penalty, and other restrictions have been imposed on them.
Minister of State, Finance Pankaj Chaudhury in a separate reply said that SEBI received some complaints in the year 2015 alleging certain irregularities in respect of the co-location facility provided by NSE. "During the course of investigation by SEBI, it was found that certain emails were shared by former MD & CEO of NSE to an unknown person. Based on the findings of the examination/ investigation, enforcement action was initiated by SEBI against certain entities and other persons and consequently, it passed requisite orders," he added.
Former MD and CEO of NSE Chitra Ramakrishna is currently under CBI custody with her colleague and Group Operating Officer (GOO) during her tenure Anand Subramanian.
Also read: NSE co-location case: Court allows CBI to collect Chitra Ramkrishna's handwriting specimen
