New Delhi: CBI has arrested the broker and managing director of Delhi OPG Securities Sanjay Gupta In the NSE scam, four years after the agency filed an FIR against him for alleged preferential access to the market through multiple IDs and secondary servers, called co-location facilities, officials said on Wednesday, officials said.
He said the agency conducted raids late Tuesday evening and arrested Gupta from his office here.
CBI had earlier arrested former CEO and MD of NSE Chitra Ramakrishna And Group Steering Officer Anand Subramaniam in connection with the case and both are in judicial custody since March.
Officials said Gupta managed to reach out to a Mumbai-based syndicate to allegedly influence Sebi officials probing the NSE co-location scam.
He said members of the syndicate had assured Gupta to manage the SEBI officials on their behalf.
The agency also had information that Gupta had attempted to destroy some vital evidence in the case, necessitating his arrest after four years, he said.
The CBI has alleged that Gupta was one of the main beneficiaries of the co-location facility introduced by NSE, which helped him gain favorable access to the market at other brokers through multiple logins and access to secondary servers that allowed him to Gave significant time gains and as a result the profits of his company increased manifold in just two years.
In NSE, selected players in co-location scam had market price information before others as the stock market was using tick-by-tick techniques in algorithmic based trading and co-location services, which benefited Gupta.
He added that the feature allowed users to gain access to prices before others.
The investigation has so far revealed that during the period 2010-15 when Ramakrishna was managing the affairs of NSE, OPG Securities, one of the accused in the FIR, connected to the secondary POP server on 670 trading days in the futures and options segment. was. CBI has alleged.
Officials said investigations are underway into the alleged role of then senior NSE officials, who were looking for co-location, which is understood to have given “undue gains and wrongful gains” to some stockbrokers, including OPG Securities. went. matter, at the expense of others.
Officials said the co-location facility at NSE was a “major policy decision” in which the then MD and CEO and other senior officials would have played a “decisive role”.
CBI investigation revealed that Ramakrishna was appointed as Joint MD in 2009 and remained in the post till 31 March 2013 with the power of DMD. He was promoted as MD & CEO on April 1, 2013.
The agency has also alleged that Muraleedharan Natarajan, CTO of NSETech (a subsidiary of NSE), which was responsible for setting up the co-location architecture at NSE, was reporting directly to Ramakrishna, officials said. .
Ramakrishna, who replaced former CEO Ravi Narayan in 2013, appointed Subramaniam as his advisor, who was later promoted to Group Operations Officer (GOO) and received a rough pay check of Rs 4.21 crore annually. was happening.
On February 25, the CBI had arrested Anand Subramaniam, a former operating officer of the NSE group, and later Ramakrishna was also taken into custody.
The Securities and Exchange Board of India (SEBI) on February 11 had accused Ramakrishna and others of alleged governance lapses in the appointment of Subramaniam as chief strategic advisor and his re-designation as group operating officer and advisor to the MD.
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