Foreign investors in National Stock Exchange urge bourse not to challenge SEBI's big fine

Some foreign investors in India’s National Stock Exchange (NSE) are urging the bourse not to challenge the penalty and instead focus on doing a long-awaited initial public offering

Reuters May 02, 2019 17:37:18 IST
Foreign investors in National Stock Exchange urge bourse not to challenge SEBI's big fine
  • The Securities and Exchange Board of India (SEBI) on Tuesday ordered the country’s largest stock exchange to pay about $100 million, plus interest, after finding that it had failed to ensure equal access for all brokers to its network servers

  • NSE said it was reviewing the order and awaiting legal advice before deciding whether to appeal against SEBI’s order to the Securities Appellate Tribunal

  • But foreign investors in NSE, who have been pushing the exchange to go public, said they fear that an appeal would further delay its plans for an IPO that bankers had estimated could raise up to $1 billion

Mumbai: Some foreign investors in India’s National Stock Exchange (NSE), which the market regulator has slapped with a steep fine and a six-month ban from public fundraising, are urging the bourse not to challenge the penalty and instead focus on doing a long-awaited initial public offering.

Foreign investors in National Stock Exchange urge bourse not to challenge SEBIs big fine

NSE (National Stock Exchange) building in Mumbai.
Reuters.

The Securities and Exchange Board of India (SEBI) on Tuesday ordered the country’s largest stock exchange to pay about $100 million, plus interest, after finding that it had failed to ensure equal access for all brokers to its network servers.

NSE said it was reviewing the order and awaiting legal advice before deciding whether to appeal against SEBI’s order to the Securities Appellate Tribunal.

But foreign investors in NSE, who have been pushing the exchange to go public, said they fear that an appeal would further delay its plans for an IPO that bankers had estimated could raise up to $1 billion.

The NSE originally planned a public offering in 2017 but it was delayed due to SEBI’s investigation into whether bourse employees provided unfair access to some brokers to its co-location servers, which are placed at the site of exchanges to speed up algorithmic trading.

Updated Date:

also read

Market Roundup: Sensex surges 256 points; Nifty closes at 14,823; top gainers and losers
Business

Market Roundup: Sensex surges 256 points; Nifty closes at 14,823; top gainers and losers

HDFC was the top performer in the Sensex pack, spurting 2.70%, after reporting a 31% jump in net profit for the March quarter

Market Roundup: Sensex gains 272 points on auto, IT, financial stocks; today’s top gainers and losers
Business

Market Roundup: Sensex gains 272 points on auto, IT, financial stocks; today’s top gainers and losers

Apart from Nifty Pharma, Nifty PSU Bank, and Nifty Private Bank, all the other sectoral indices of NSE were trading in green

Market Roundup: Sensex climbs 295 points, Nifty ends at 14,942; today's top gainers and losers
Business

Market Roundup: Sensex climbs 295 points, Nifty ends at 14,942; today's top gainers and losers

Auto, infra, energy, pharma, PSU Bank, and metal indices witnessed an increase of 1 to 3 percent at the closing bell, while BSE Midcap and Smallcap rose nearly a percent each