NSE Co-location Scam: Sebi fines exchange with Rs 7 cr, imposes Rs 5cr penalty on Chitra Ramkrishna

The Securities Exchange Board of India (SEBI) has imposed a fine of Rs 5-7 crore in dark fiber case on the parties involved in the NSE Co-Location case.  

As per the SEBI, a penalty of Rs 7crore was imposed on the National Stock Exchange (NSE) and Rs 5 crore on Chitra Ramkrishna, former CEO and Managing Director of the NSE.  

Besides, Way2Wealth brokers PVt Ltd, Anand Subramanian, former Group Operating Officer (GOO) of NSE, and head of business development Ravi Varanasi were fined Rs 5 crore each for their involvement in the case.  

Earlier last week, the CBI has arrested Sanjay Gupta, owner and promoter of Delhi based OPG Securities Pvt. Ltd, in connection with the scam in which brokers allegedly abused the facility to make gains by getting early access to the stock market, officials told PTI. 

#BreakingNews | NSE को-लोकेशन मामले में सेबी ने लगाया जुर्माना..

#ChitraRamkrishna पर ₹5 Cr का जुर्माना लगाया गया
Way2Wealth ब्रोकर्स पर ₹6 Cr का जुर्माना
NSE पर ₹7 Cr का जुर्माना लगाया गया
आनंद सुब्रमण्यम पर ₹5 Cr और रवि वाराणसी पर ₹5 Cr का जुर्माना लगाया गया pic.twitter.com/XQyrMRXMtw

— Zee Business (@ZeeBusiness) June 29, 2022

The agency has already arrested Chitra Ramkrishna, former CEO and Managing Director of NSE and Anand Subramanian, they said. 

Gupta was arrested here on Tuesday night, four years after the agency had registered the FIR in the Co-location scam case against him and his company. 

The recent CBI probe showed that he allegedly tried to destroy evidence and also bribe SEBI officials investigating the NSE Co-location scam case, they said. 

It is alleged Gupta approached a "syndicate" through which he tried to influence SEBI officials, they said. 

The agency was also probing unidentified officials of the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE), Mumbai and other unknown persons. 

"It was alleged that the owner and promoter of said private company abused the server architecture of NSE in conspiracy with unknown officials of NSE. It was also alleged that unknown officials of NSE, Mumbai had provided unfair access to said company using the co-location facility during the period 2010-2012 that enabled it to login first to the exchange server of Stock Exchange that helped to get the data before any other broker in the market," the CBI has alleged in the FIR. 

With PTI inputs