NSE Colo Scam: Chitra Ramkrishna Approaches Delhi HC for Bail
National Stock Exchange's (NSE) former head Chitra Ramkrishna on Wednesday approached the Delhi High Court (HC) for bail, following the denial of her plea by the trial court.
However, the bench of justice Talwant Singh recused himself from hearing her plea.
On 12th May, special CBI (central bureau of investigation) court Judge Sanjeev Aggarwal dismissed her bail application, considering the gravity of the matter.
Ms Ramkrishna, along with co-accused and former NSE official Anand Subramanian, are currently lodged in Tihar Jail under judicial custody. They have been charge-sheeted under various sections of the IPC (Indian Penal Code).
The co-location (Colo) scam denotes how some of the brokers, who in the co-location facility offered by the NSE, could place their servers within the stock exchange premises giving them faster access to the markets, had in connivance with insiders abused the algorithm and the facility to make windfall profits.
The CBI has been probing the case since May 2018.
Recently, the Securities and Exchange Board of India (SEBI) had imposed a fine of Rs3 crore on Ms Ramkrishna, following the market regulator finding that she allegedly shared vital inputs about NSE with a mysterious Himalayan yogi, including information on "organisational structure, dividend scenario, financial results, human resource policies and related issues, response to regulator."
On 1 April 2013, Ms Ramkrishna became the chief executive officer (CEO) and managing director (MD) of NSE. She brought Mr Subramanian to NSE as her adviser. He was made the chief strategic adviser of NSE. He served at this post between 2013 and 2015 before being made group operations officer (GOO) and Adviser to the MD between 2015 and 2016, despite having no exposure to the capital market.
Previously working as a mid-level manager in Balmer and Lawrie, he had seen his salary increase from Rs15 lakh to Rs1.68 crore annually, and then to Rs4.21 crore.
Mr Subramanian quit NSE in October 2016 and Ms Ramkrishna left in December 2016. CBI swung into action in the case in 2018 and has been probing the matter since then.
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