The CBI had questioned Anand Subramanian earlier this week about his role at the exchange.
Former National Stock Exchange group operating officer Anand Subramanian was arrested by the CBI late Thursday night in connection with the ongoing probe into alleged irregularities in the stock market manipulation case.
The arrest was made in view of "fresh facts" emerging in a damning Sebi report, officials said on Friday.
He was questioned for days in Chennai before the agency decided to arrest him, the officials said.
Anand Subramanian was first appointed as Chief Strategic Adviser in National Stock Exchange (NSE) in 2013 and then promoted as Group Operating Officer of NSE in 2015 by MD Chitra Ramakrishna.
In 2016, he left the National Stock Exchange after allegations of irregularities surfaced.
The Securities and Exchange Board of India (Sebi) has charged Chitra Ramkrishna and others with alleged governance lapses in the appointment of Subramanian as the chief strategic advisor and his re-designation as group operating officer and advisor to MD.
Sebi has levied a fine of Rs 3 crore on Ramkrishna, Rs 2 crore each on NSE, Subramanian, former NSE MD and CEO Ravi Narain, and Rs 6 lakh on V R Narasimhan, who was the chief regulatory officer and compliance officer.
