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.

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.

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.

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.

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.

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.

Sources News 18, Economic Times

Jun 2017

Not convinced with Deloitte's audit report, SEBI recruits its own forensic auditor to investigate the scam.

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.

Sources Times of India, Livemint

Jul 2018

Deloitte's audit names three brokers that collaborated with NSE, misused the secondary data & flouted the norms.

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.

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.

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.

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.

Source: Times of India, Livemint

Mar 15, 2022

Delhi court sends ex-NSE CEO Chitra Ramkrishna to 14 days custody in co-location scam.

Source: Press Trust of India