Ashok Chawla resigns as NSE chairman in connection to Aircel-Maxis case

In yet another major development in the Aircel-Maxis case, Ashok Chawla has resigned as the chairman of the National Stock Exchange of India (NSE) on Friday. The development came after the Centre granted sanction to prosecute five people including Chawla accused in the Aircel-Maxis case. In a statement, the bourse said Chawla has resigned as "Public Interest Director/ Chairman of the Board of Directors of the National Stock Exchange of India Ltd with immediate effect in light of recent legal developments".

"Ashok Chawla has resigned as Public Interest Director/Chairman of the Board of Directors of the National Stock Exchange of India Ltd (NSE) with immediate effect in light of recent legal developments," the news agency ANI reported.

NSE: Ashok Chawla has resigned as Public Interest Director/Chairman
of the Board of Directors of the National Stock Exchange of India Ltd (NSE) with immediate effect in light of recent legal developments.

— ANI (@ANI) January 11, 2019

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Earlier in the day, the Central Bureau of Investigation (CBI) counsel informed a special court in Delhi that it has obtained sanction to prosecute Ashok Chawla and four the then Foreign Investment Promotion Board (FIPB) officials in the Aircel-Maxis case.

Chawla, who was appointed NSE Chairman in 2016, was the former Secretary of Economic Affairs and is named in the infamous Aircel-Maxis case along with former finance minister P Chidambaram and his son Karti Chidambaram.

The Securities and Exchange Board of India (Sebi) has been probing the alleged lapses in high-frequency trading offered through NSE's co-location facility. It was also investigating whether some brokers had unfair access to the exchange's co-location facility.

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In July 2018, there were also reports that market regulator Securities and Exchange Board of India (SEBI) would take cognisance of the matter and look at whether or not to allow Chawla to continue holding the post.

As per the revised rules, the A class government officials holding the positions of joint secretary and above cannot be prosecuted without the approval of the Centre, whether or not the officials are still in active service.