CBI questions former NSE CEO Ravi Narain in connection with co-location case

CBI logo. File Photo

Central Bureau of Investigation (CBI) on Sunday questioned former chief executive officer of National Stock Exchange Ravi Narain in connection with the NSE co-location case in Mumbai, said sources.

According to sources, this comes after the CEO and former managing director of NSE Chitra Ramkrishna was also questioned by the CBI on Friday. Ravi Narain was the MD and CEO of the National Stock Exchange from April 1994 till March 2013, while Chitra Ramkrishna was the MD and CEO of the NSE from April 2013 to December 2016.

The Income Tax (IT) Department on Thursday raided various premises linked to Chitra Ramkrishna in Mumbai and Chennai. Last week the SEBI penalized Chitra Ramkrishna, her predecessor at the NSE Ravi Narain, two other officials along with the NSE for lapses in hiring at the senior level.

The market regulator found that the NSE and its top officials violated securities contract rules related to the appointment of Anand Subramanian as group operating officer and adviser to the Managing Director. SEBI has slapped a penalty of Rs 3 crore on Chitra Ramkrishna, in a fresh order in the co-location case.

The 190-page order also faulted Ramkrishna for running the exchange at the behest of a mysterious yogi. The market regulator SEBI called it "bizarre misconduct" and a "glaring breach" of regulations. The term 'co-location' refers to a setup in which the broker's computer is located in the same area as the stock exchange's server. There are allegations of preferential access to the trading system to a few.

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