Context: The Central Bureau of Investigation (CBI) recently arrested Chitra Ramkrishna, former Managing Director of the National Stock Exchange (NSE), in a case registered in May 2018, to probe the alleged abuse of the NSE’s server architecture for granting preferential access of market data to a stock broker, ahead of others.
Ms. Ramkrishna was NSE’s Managing Director and Chief Executive Officer from April 2013 to December 2016.
Earlier penalty by SEBI
On February 11, the Securities and Exchange Board of India (SEBI) levied penalties on Ms. Ramkrishna, Mr. Subramanian, and former NSE MD Ravi Narain on account of multiple violations, including irregularities in Mr. Subramanian’s appointment as a Chief Strategic Adviser and his re-designation as the Group Operating Officer and Adviser to the then NSE MD.
National Stock Exchange of India
It is the leading stock exchange of India, located in Mumbai, Maharashtra.
It is the world’s largest derivatives exchange in 2021 by number of contracts traded based on the statistics maintained by Futures Industry Association (FIA), a derivatives trade body.
It is under the ownership of some leading financial institutions, banks, and insurance companies.
NSE was established in 1992 as the first dematerialized electronic exchange in the country.
NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system that offered easy trading facilities to investors of the country.
