NSE co-location case: Court reserves order on bail petitions of Chitra Ramkrishna, Arvind Subramanian

A Special Court on Thursday reserved the order on the bail petitions of former managing director and chief executive officer of National Stock Exchange (NSE) Chitra Ramkrishna and Group Operating Officer and Advisor to MD Arvind Subramanian in connection with the NSE co-location case.

Special Central Bureau of Investigation (CBI) Judge Sanjeev Aggarwal on Friday said arguments heard at length on bail application under section 439 of CrPC moved on behalf of accused Chitra Ramkrishna and concluded. Further arguments were also heard at length on the second bail application of Arvind Subramanian filed under sections 437 and 439 of CrPC moved on behalf of the accused and concluded.

The Court fixed May 9, 2022, for order on both bail applications.

The CBI recently arrested Chitra Ramkrishna and Anand Subramanian in connection with the NSE co-location case.

The CBI in its reply in court stated that the applicant Chitra Ramkrishna is highly influential and may tamper with the documentary/ digital evidence and manipulate the witnesses if released on bail. "The petitioner was a high-ranking official of NSE during the relevant period. Incriminating evidence has already come to the fore against her. The consequences of granting bail will adversely affect the investigation."

CBI also stated that the examination of other witnesses is underway to unearth the conspiracy related to the co-location set-up and the role played by the applicant Chitra Ramkrishnatherein. "She was looking into the day to day affairs and the entire Co-location setup that was implemented during her tenure at NSE. There are apprehensions that she may sway the witnesses if enlarged on bail."

As per the CBI's reply, the case pertains to the allegations against senior officials of the NSE where undue gains have been made by trading members by abusing the co-location facility. Investigation into the role and responsibility of top officials in facilitating unfair access to the co-location setup is underway, the agency said.

In the National Stock Exchange co-location case, the CBI states that accused Chitra Ramakrishna, by misusing her official position, re-designated the post of accused Anand Subramanian as Group Operating Officer and Advisor to MD from April 1, 2015, without bringing the same to the notice of NRC and the board.

The CBI is probing the alleged improper dissemination of information from the computer servers of the market exchanges to the stockbrokers.

Earlier, the Securities and Exchange Board of India (SEBI) has penalized the NSE and its former CEOs Chitra Ramakrishna and Ravi Narayan and two other officials for lapses in recruitment at the senior level.

Ravi Narain was the MD and CEO of the National Stock Exchange from April 1994 till March 2013, while Chitra Ramkrishna was MD and CEO of the NSE from April 2013 to December 2016.

The market regulators observed that the NSE and its top executives violated securities contract norms relating to the appointment of Anand Subramaniam as group operating officer and advisor to the managing director.

( With inputs from ANI )