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Article Timeline - Co-Location Scam
NSE & some brokers had their servers in the same location. NSE is accused of providing priority access to its servers to certain brokers. This gave these brokers an unfair edge over others. Read how the scam broke & the follow-up stories below.
2015
Whistleblower files complaint with SEBI alleging irregularities in NSE's co-location centre. NSE officials & select traders were accused of collusion, violating co-location guidelines & receiving info before others.
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Sources: News 18, Economic Times
Jun 2015
Sucheta Dalal-founded MoneyLife writes to SEBI Chairman & NSE management including Chitra Ramakrishnan, asking about action on the complaint. It gets no reply, prompting MoneyLife to share documents online & to urge traders to share insights on the potential scam.
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Sources: MoneyLife, Economic Times
Jul 2015
NSE slaps a ₹100cr defamation case on MoneyLife. This, after Moneylife reported that collusion between NSE officials & traders to get an edge over others jeopardized the interest of retail investors.
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Sources: Indian Express, The Hindu Business Line
Sept 2015
The Bombay HC rules against NSE and asks it to pay ₹1.5 lakh each to founders of MoneyLife (Debashis Basu & Sucheta Dalal). HC also imposes a fine of ₹47 lakh on NSE to be paid in the form of donations to hospitals.
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Sources: Times of India, Livemint
Dec 2016
Chitra Ramkrishna resigns as NSE MD & CEO. Her decision to quit comes almost a year before her tenure ends in 2018.
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Sources: Livemint, Business Standard
2016-17
SEBI directs NSE to carry out audits & transfer revenue from co-location to an escrow account (Usually a bank account with the 3rd party to hold money incase of disputes). Deloitte & EY to conduct audits.
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Sources News 18, Economic Times
Jun 2017
Not convinced with Deloitte's audit report, SEBI recruits its own forensic auditor to investigate the scam.
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Sources: Times of India, Livemint
Sept 2017
NSE withdraws defamation suit against Moneylife. However, it had to pay the fines levied by the Bombay High court.
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Sources Times of India, Livemint
Jul 2018
Deloitte's audit names three brokers that collaborated with NSE, misused the secondary data & flouted the norms.
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Sources: Deloitte, Moneycontrol
Aug 2018
EY submits its report but refrains from drawing conclusions from obvious findings which prompts SEBI to ask Why Is a Forensic Firm Like EY Incapable of Drawing Conclusions.
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Source: MoneyLife, Moneycontrol
Apr 2019
SEBI slaps NSE with a ₹625cr fine with 12% interest & bars it from raising money from markets for 6 months. It also asks NSE's two ex-CEOs (Ravi Narain & Chitra Ramkrishna) to transfer 25% of their salaries for FY11 to FY13 to the Investor Protection and Education Fund.
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Source: Business Today, News 18
Feb 2022
The CBI arrests ex-Group Operating Officer of NSE Anand Subramanian after expanding its 3yr investigation. This comes after a damning Sebi report which showed that a mysterious Yogi was guiding actions of ex-CEO Chitra Ramkrishna.
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Source: Press Trust of India
Mar 7, 2022
In order to conduct a fair & proper probe, ex-NSE CEO Chitra Ramkrishna is sent to 7 days CBI custody for interrogation.
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Source: Times of India, Livemint
Mar 15, 2022
Delhi court sends ex-NSE CEO Chitra Ramkrishna to 14 days custody in co-location scam.
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Source: Press Trust of India