Business Standard

NSE co-location scam: CBI may expand scope of probe beyond FIR

IANS  |  New Delhi 

The (CBI) in a status report on the NSE co-location scam, informed the on Wednesday that its investigation was not restricted to the FIR which was initially registered.

The said that in case any fact emerges that the "NSE/SEBI/Department/Ministry or any private person/public servant irrespective of office he was holding during the relevant period, if found part of conspiracy", that particular individual or entity will be investigated in accordance with the law.

Therefore, the has come on record that the scope of the investigation can possibly go beyond the FIR in order to unearth the larger conspiracy in the scam.

Earlier, the had directed the to submit a status report on May 22 on its investigation.

A PIL filed by petitioner Ray, represented by Mahesh Jethmalani, contended that abusing its market position, the NSE helped deviant brokers and politicians make alleged illegal gains, risking the institutional set-up of exchanges.

The petition also alleged that SEBI failed to take stringent action against such errant brokers from the NSE, it's own officers who were involved and other culpable persons.

The scam basically alleges market manipulation at the NSE. It has been alleged that only a few select players got access to the market-price information, before anybody else could.

This helped the deviant brokers to make wrongful gains, which allegedly ran into thousands of crore.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 22 2019. 14:54 IST