For the last couple of weeks, sinister reports have been doing the rounds about the National Stock Exchange, and Chitra Ramakrishna and Anand Subramanian have been at the eye of this storm. This morning, the Central Bureau of Investigation arrested the latter and a can of worms seems to have been laid open. Here's all you need to know.
Who is Anand Subramanian?
Until 2013, Anand Subramanian worked for Balmer Lawrie, a government corporation under the Ministry of Petroleum and Natural Gas. In 2013, Chitra Ramakrishna, who was at the time the CEO and MD of the National Stock Exchange, appointed him as the Chief Strategic Advisor and then, in 2015, he was re-designated as the Group Operating Officer and an Advisor to the MD. He was often also provided with substantial hikes in his salary by Ramakrishna.
How was he appointed?
Anand and Chitra were related through "family ties". His appointment did not go through the Human Resources Department at the NSE and, according to cnbctv18.c0m, the position for Chief Strategic Advisor wasn't advertised either. Here's the weird twist though. A report by SEBI after an investigation into the suspicious activity at NSE revealed that Ramakrishna appointed Subramanian on the advice of a Yogi. A deeper dive into the emails between Ramakrishna and this "yogi" revealed that it was none other than Subramanian, the CBI revealed today.
What's the scam he has been apprehended for?
In January 2015, a whistleblower informed SEBI about unfair practices at the NSE, where certain brokers were being given early access to the colocation facility at the stock exchange, providing them with an advantage over other brokers. This was allegedly made easy by the Tick-by-Tick or TBT method adopted by the NSE to share data. The whistleblower said that this was being done by some top officials in the NSE.
What steps did SEBI take?
SEBI formed an expert committee in 2016 that said that there were irregularities in the NSE. Further investigations ensued and the regulatory body fined the NSE Rs 624.89 crore and banned it from putting up funds on the market for six months. By that time, Ramakrishna had already resigned from her post in 2016.
What's happening now?
SEBI's investigation has led it to file charges against Ramakrishna and the former CEO Ravi Narain for lapses in the exchange. Questions about the appointment and the positions held by Subramanian were also raised. After extensive questioning over three days, Subramanian was finally arrested last night.