I-T dept, ED, CBI probing irregularities in NSE co-location case: Govt

The income tax department, ED and CBI are investigating the case related to irregularities in co-location facility provided by NSE, Minister of State for Finance Pankaj Chaudhary said on Tuesday.

In a written reply in the Rajya Sabha, the minister said market regulator Sebi, after investigation into the matter involving NSE and other entities, has passed requisite orders.

"CBI, Enforcement Directorate and Income Tax Department are investigating the case related to irregularities in respect of Co-location facility provided by NSE and their investigations are still going on," he said.

To a question on whether further measures are to be adopted to strengthen the stock exchanges in the light of the NSE case, the minister said review of governance norms in Market Infrastructure Institutions (MIIs) is a continuous process and the same is carried out regularly as per the changing dynamics of the securities market.

"Some of key measures undertaken by SEBI are strengthening of governance norms across MIIs and making code of conduct applicable to the Stock Exchanges, Clearing Corporations and Depositories for prevention of fraud or market abuse," he said.

The CBI had last month arrested NSE's former MD and CEO Chitra Ramkrishna. She has been remanded to judicial custody till April 11.

The arrest pertaining to the co-location case follows an FIR which was registered in May 2018, amid fresh revelations about irregularities at the country's largest stock exchange.

In February this year, Sebi imposed a monetary penalty on NSE as well as Ramakrishna and Ravi Narain, and two other officials for lapses in recruitment at the senior level. Narain was at the helm of affairs at NSE from April 1994 till March 2013, while Ramkrishna was MD and CEO of the stock exchange from April 2013 to December 2016.

Sebi has observed that NSE and its top executives violated norms in appointing Anand Subramanian as Group Operating Officer (GOO) and advisor to the MD.