CBI arrests former CEO Chitra Ramkrishna in NSE co-location scam

The Central Bureau of Investigation (CBI) on Sunday arrested the former managing director and chief executive officer of National Stock Exchange (NSE) Chitra Ramkrishna in Delhi in connection with the co-location scam case.

On Saturday, a Delhi court had refused to grant anticipatory bail to Ramkrishna. A CBI team called Chitra for questioning and later she was arrested. She will be produced before a competent court on Monday.

On February 25, Anand Subramanian, former Group Operating Officer and advisor to Chitra Ramkrishna, was arrested by CBI in Chennai. Earlier, the Securities and Exchange Board (SEBI) has slapped a penalty of Rs 3 crore on Chitra Ramkrishna 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.