India

ED conducts searches in NSE co-location scam case

The National Stock Exchange (NSE) building in Mumbai.

The National Stock Exchange (NSE) building in Mumbai. | Photo Credit: REUTERS

The Enforcement Directorate (ED) on Friday conducted searches at multiple locations in Delhi and neighbouring Gurugram in connection with the National Stock Exchange (NSE) co-location scam.

According to the agency sources, about 10 places linked to stock brokers were searched during the operation. The ED probe is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) in 2018, alleging that from 2010 to 2014, Delhi-based stock broker OPG Securities gained preferential access to the NSE's market feed via its secondary server, in connivance with its data-centre staff.

The firm used an algorithmic trading software package developed by co-accused Ajay Narottam Shah, on the basis of the exchange's trade data collected by him in 2005-06 on the pretext of research work.

The CBI recently arrested former NSE managing director Chitra Ramkrishna and its former group operating officer, Anand Subramanian, in the same case.

Mr. Subramanian had resigned in October 2016 and Ms. Ramkrishna stepped down in December 2016. On February 11, the Securities and Exchange Board of India (SEBI) levied fines on the two accused and others on various counts. Then, the Income-Tax Department had also searched their premises in Chennai and Mumbai.


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Printable version | Sep 17, 2022 9:47:00 am | https://www.thehindu.com/news/national/ed-conducts-searches-in-nse-co-location-scam-case/article65303408.ece