“Who Will Invest In India If Scams Like This Happen?”: Court On NSE Scam

New Delhi: The judges of the Special CBI Court on the National Stock Exchange Corruption has questioned that who ill invest in India if such scams will be happening, according to NDTV reports.

 “Who will invest in India with scams like this?,” judges said in frustration today about the corruption case of National Stock Exchange (NSE).

Rebuking the Central Bureau of Investigation (CBI), for not moving quickly, the judges pointed out that four years have lapsed since the agency began studying the corruption involving the exchange’s top officials including then CEO Chitra Ramakrishna. On March 6 Chitra Ramakrishna was arrested from Chennai. Her then adviser, Anand Subramanian, was arrested on February 24.

According to NDTV report, CBI Court today said, “The country’s markets regulator, SEBI, should also be investigated to determine if it took any action to block and then punish the corruption.”

The NSE was the country’s biggest bourse.

For speeding up algorithmic trading, a selected group of traders were given access to servers of NSE in 2018. This allowed them to transact earlier than other traders.

According to NDTV reports, officials of CBI in recent times have visited market regulator SEBI’s office in Mumbai to collect documents related to the case.

The “server case” is hitting headlines since Chitra Ramkrishna, in charge of the NSE, said that she shared confidential information with someone she described as a Himalayan yogi. Emails show her seeking advice from the same outsider.

In February 11 order by SEBI that highlighted corporate governance lapses at the exchange, also highlighted this.

The order said, “The former CEO “arbitrarily” appointed Anand Subramanian as her adviser, adding he had “no relevant experience”. He was given the role of Chief Advisor to MD of NSE along with a salary vastly disproportionate with his experience.”

During the investigation, Chitra said to SEBI that she did not compromise integrity of the exchange.

The government is looking if any adequate action was taken by SEBI in NSE matter, said Finance Minister Nirmala Sitharaman.

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