INDIA: The Enforcement Directorate arrested former National Stock Exchange of India Limited (NSE) CEO and MD Ravi Narain in a money laundering case.
His role is being investigated by the Federal Bureau of Investigation in two criminal cases linked to the exchange, an alleged co-location “fraud” and alleged illegal wiretapping of employees.
Narain is believed to have been arrested in a wiretapping case under penal sections of the Prevention of Money Laundering Act (PMLA). Narain will be produced before a special court on Wednesday for remand.
The ED had earlier arrested another former NSE MD and CEO Chitra Ramkrishna in the alleged phone tapping case, while the CBI, which is investigating the cases concurrently, arrested her in the co-location case.
The Enforcement Directorate also arrested former Mumbai Police Commissioner Sanjay Pandey in a case of alleged illegal wiretapping.
The ED had in July registered an Enforcement Case Information Report (ECIR) against former Mumbai Police Commissioner Sanjay Pandey and former NSE chiefs for allegedly tapping the phones of employees between 2009 and 2017.
During the investigation, Pandey was found to be closely associated with the functioning and activities of a company called iSec Securities Pvt Ltd. The company conducted a security audit of the NSE at the time of the alleged co-location irregularities.
The company was founded by Pandey in March 2001 and he quit as its director in May 2006. His son and mother took over the management of the company.
This is the second case being investigated by the investigative agency, which is investigating alleged violations of money laundering norms in the co-location scam. This is the first time Narain has been arrested when irregularities at the NSE have been under investigation for five years.
Pandey is a 1986 batch Indian Police Service (IPS) officer who retired from service on June 30.
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