The Central Bureau of Investigation has registered a case U/s 120 B, 204 of IPC r/w Section 7, 12 & 13(2) r/w 13(1) (d) of PC Act, 1988 and U/s 66 of I.T. Act, 2000 against Owner & Promoter of private company based at Asaf Ali Road, New Delhi; his relative (a private person), resident of Bangalore; another private person, resident of Satsang Vihar Marg, New Delhi; said private company based at Asaf Ali Road, Delhi; unknown officials of Securities and Exchange Board of India (SEBI) & National Stock Exchange (NSE), Mumbai and other unknown persons.
It was alleged that the owner & promoter of said private company abused the server architecture of NSE in conspiracy with unknown officials of NSE. It was also alleged that unknown officials of NSE, Mumbai had provided unfair access to said company using the co-location facility during the period 2010-2012 that enabled it to log in first to the exchange server of Stock Exchange that helped to get the data before any other broker in the market. After the introduction of Load balancer during October 2012 while servers of all other brokers were connected to the primary servers of NSE, the owner once again allegedly managed the data centre staff of NSE to get connected to the backup servers. Backup servers were with zero load and therefore had provided far better and fast access to the market feed to the said private company in comparison to other brokers. Thus, the favour was allegedly shown by unknown officials of NSE to private company by providing market feed first in comparison to other brokers.
It was further alleged that in order to ensure the favourable report from SEBI in the enquiry carried out by SEBI against the role of said private company in the misuse of TBT architecture of NSE, the owner influenced the unknown officials of SEBI for which alleged bribe money was given to some unknown officials of SEBI. It was also alleged that another private person, resident of Delhi was instrumental in exploitation of NSE TBT architecture who collected NSE trade data in year 2005-06 (apparently) in the name of carrying out research and with the help of these data, he developed an algo software named ‘chanakya’ which was sold to selected brokers including said private company. It was further alleged that the owner with the help of his relative was illegally trading in Dubai, Ghana, Singapore, Hongkong and China through said private company.
Searches were conducted today at 07 places in Delhi, Mumbai and Bangalore which led to recovery of certain documents.
Investigation is continuing.