Subramanian was picked up from his Chennai home late Thursday night and will be taken to the federal agency’s headquarters in Delhi where he will be produced before a local court for custody. He was placed under arrest after he failed to cooperate in the agency’s ongoing probe triggered by the revelation of email exchanges between Ramkrishna and an individual referred to as ‘yogi’.
A whistleblower in 2014-15 complained to the Sebi saying some brokers in collusion with a few top NSE officials had abused the co-location facility. NSE was then using the so-called tick-by-tick (TBT) server protocol to relay data to members. The peculiar part about this protocol is how it delivers the information. Normal data protocols send data to all users connected on the network at the same time. But TBT transmits in the sequence of orders received. In other words, the user who gets the access to the system first would receive data earlier than the rest.
It is alleged that OPG Securities, one of the trading members, was provided unfair access between 2012 and 2014 that enabled it to log in first to the secondary server and get the data before others in the co-location facility.
The agency, it is believed, has clinching evidence against the alleged accused in the case. The CBI had on February 19 grilled erstwhile NSE director Ravi Naraian. He served as the CEO of NSE before Ramakrishna.
Sebi had penalised Ramkrishna for allegedly violating securities contract rules in the appointment of Subramanian as group operating officer and advisor to the MD. It said Ramkrishna was steered by the ‘yogi’ in the appointment of Subramanian.
Co-location is a popular system that exchanges across the world offer to sophisticated trading members. While the main stock exchange servers in India are in Mumbai, the brokerages using them are spread across the country. Using normal internet connection to access these systems sometimes leads to data latency, or delay in transmission of data.
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