Mumbai: Leading stock exchange NSE’s board has given its approval to the Central Bureau of Investigation (CBI) to prosecute its former MD and CEO Chitra Ramkrishna in the co-location scam case, sources said.
The CBI was awaiting the go-ahead of the board of National Stock Exchange of India (NSE) to prosecute Ramkrishna following her arrest in March last year. She was arrested in the co-location scam nearly four years after an FIR was registered by the agency in May 2018.
The CBI is probing the alleged improper dissemination of information from the computer servers of the market exchanges to the stock brokers. NSE’s co-location facility allows stock brokers to take on rent specific racks and co-locate their servers and systems within the exchange premises.
In its board meeting on February 7, the board of NSE accorded approval to CBI to prosecute top officials including Ramkrishna in the co-location scam, wherein some brokers allegedly got preferential access in high frequency trading, sources said.
Ramkrishna was granted bail in the CBI case by the Delhi High Court in September last year. Last week, the Delhi High Court also granted bail to Ramkrishna in a money laundering case related to alleged illegal phone tapping and snooping on NSE employees, registered against her by the Enforcement Directorate (ED).
The former NSE managing director, who was earlier arrested by the CBI in the co-location scam, was arrested in the money laundering case by the Enforcement Directorate on July 14 last year.