NSE co-location scam: Delhi HC asks CBI to file affidavit mentioning status

The Delhi High Court has asked the CBI, which is probing the National Stock Exchange (NSE) co-location scam, to file an affidavit mentioning the update in the case in view of the petition filed by journalist Shantanu Guha Ray.

Ray has alleged that despite the whistleblower providing details of the scam nearly three-and-half years ago, nothing "substantial" has happened in the case.

A division bench headed by Chief Justice Satish Chandra Sharma was hearing Ray's counsel, who contended that despite filing status reports before and now, no action has been taken.

He urged before the bench that something should come on record.

Earlier, petitioner's counsel Senior Advocate Gaurav Bhatia had said that even though the scam is of multiple thousand of crores, no solid action has been taken.

To this, CBI's counsel had said that a case has already been registered and in six to eight months, the investigation will likely get over.

The case is of the year 2015, when a whistleblower wrote to the market regulator Securities and Exchange Board of India (SEBI) about stock exchange being biased with some brokers and favouring some by allowing them to log into the NSE systems with better hardware specifications while engaging in algorithmic trading.

The person had alleged that it has resulted in unfair access and advantage.

Post the three-year investigation, the SEBI imposed a fine of Rs 1 crore in 2021 on NSE and Rs 25 lakh each on Chitra Ramakrishna and Ravi Narain, the former managing director and vice-chairman of the exchange.

Ray had filed a complaint with the CBI in 2017, alleging that the co-location scam could not have taken place without the Finance Ministry's involvement.

He had also sought an investigation against Finance Ministry officials, including former Finance Minister P Chidambaram, and SEBI Officials.

--IANS

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