ED arrests Former NSE Chief in money laundering case
The Enforcement Directorate has arrested Ravi Narain, the former Chief Executive Officer and managing director of the National Stock Exchange of India, in connection with a money laundering case related to the alleged illegal phone-tapping of NSE employees.
The anti-money laundering agency had registered a case against him, along with ex-NSE Chief Chitra Ramakrishna and former Mumbai Police Commissioner Sanjay Pandey under criminal sections of the Prevention of Money Laundering Act.
He was the managing director and chief executive officer of the exchange from April 1994 to March 2013, and was later appointed as vice-chairman, in the non-executive category, on the National Stock Exchange (NSE) board from April 2013, to June 2017, when he resigned.
Former chief executive officer of the NSE Chitra Ramkrishna was arrested by the CBI earlier this year for her involvement in extending benefits to some brokers (co-location scam) and also using the alleged phone tapping against them. The co-location scam refers to the case in which the then NSE brass are accused of providing a bunch of high frequency traders unfair access to speed up algorithmic trading.
The CBI FIR registered against Sanjay Pandey’s company, iSec Services, red flags several violations of the SEBI circular by the firm in conducting system audit of stock brokers involved in algorithmic trading using the co-location facility. It has alleged that iSec services had conducted audits of two high-risk brokers - SMC Global Securities Ltd and Shaastra Securities Trading Private Limited - fraudulently when the co-location scam was going on.
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