October 3, 2022
Money laundering case: Ravi Narayan, former MD and CEO of NSE arrested

Ex-NSE CEO Ravi Narain The Enforcement Directorate late Tuesday night arrested former National Stock Exchange (NSE) MD and CEO Ravi Narayan in a money laundering case, a dramatic turn in its probe into rigging of the exchange’s operations by a group of officials and traders. is the turning point.

The role of Ravi Narayan is being probed in the NSE co-location scam and alleged illegal phone tapping case in which former exchange chief Chitra Ramakrishnan, former operating officer of the group Anand Subramaniam and former Mumbai police commissioner Sanjay Pandey have already been arrested. Already happened.

The co location scam essentially refers to the alleged collusion between the erstwhile NSE administration and a group of brokers, who were allowed to set up their operations on the premises of the exchange, thereby giving them an unfair advantage in executing trades. While the location is not considered unfair and has been a feature of many stock exchanges internationally, the inclusion of the NSE gave an unfair advantage to a group of brokers in terms of early inflow of data. The arrest of Ravi Narain marks a major downturn in the career of Ravi Narayan, who was once a renowned executive in the financial sector.

The agency had arrested Ramakrishna for his involvement in profiteering some touts and using alleged phone tapping against him.

Pandey was arrested soon after his retirement after a lengthy interrogation about his role in the scam. He was accused of receiving alleged payments of over Rs 12 crore from the NSE by a firm linked to him, ISec Services, in connection with illegal phone tapping of some NSE officials and clients.

Ramakrishna was arrested by the ED after informing the special PMLA court that “spying of phone calls” was being done at NSE for a long time. Pandey retired from service as the Mumbai Police Commissioner on June 30 and was soon booked by the CBI and then the ED in the phone tapping case.

Both the CBI and the ED are probing NSE chiefs Ravi Narayan and Chitra Ramakrishna in the case. This is the second major arrest in the case after former Mumbai Police Commissioner Sanjay Pandey was arrested last month. The role of Narayan in the multi-crore co-location scam is also being probed.

The ED and the CBI are probing how NSE bosses Narayan and Chitra Ramakrishna had directed Pandey’s company Isec to tap the phones of senior NSE employees between 2007 and 2017.

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