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Former top NSE officials, including NSE CO Ravi Narayan and MD Chitra Ramakrishna, worked for a company floated by retired Mumbai Police Commissioner Sanjay Pandey. Pandey’s company iSEC illegally intercepted the phones of stock market employees. The CBI on Friday launched a search operation in 18 cities after registering an FIR at the behest of the Union Home Ministry. Officials said the agency has registered a case against Pandey, his Delhi-based company, former NSE MD Chitra Ramakrishna, CEO Narayan, executive vice president Ravi Varanasi and head (campus) Mahesh Haldipur, among others.
CBI raids in many cities
The agency said that no permission for this activity was taken from the competent authority under Section 5 of the Indian Telegraph Act. The consent of NSE employees was also not taken in this matter. The agency has also listed the then directors of iSEC Services Pvt Ltd Santosh Pandey, Anand Narayan, Armaan Pandey, Manish Mittal, former senior information security analyst Naman Chaturvedi and Arun Kumar Singh as accused. He said that the search operation was carried out in Mumbai, Pune, Delhi, Lucknow, Kota, Chandigarh which started on Friday morning at the premises of the accused. The audit was conducted by the company around the time when the co-location allegedly went wrong.
Pandey’s company received payment of Rs 4.45 crore for illegal tapping. It is alleged that this was disguised as a periodic study of cyber vulnerabilities in NSE. The FIR alleged that the company also provided the transcripts of tapped conversations to the senior management of the stock exchanges. The top officials of NSE issued settlement and work orders in favor of the said private company and illegally intercepted the phone calls of its employees by installing machines in violation of the provisions of the Indian Telegraph Act, a CBI statement said. .
Pandey resigned as a police officer in March 2001 to start ISEC Services Pvt Ltd but his resignation was not accepted and he returned to police service in May 2006 as a director of the company. His son and mother later took over.