NSE gets interim relief from SAT in co-location case but has to deposit Rs 625 cr with Sebi in 2 weeks

In April, Sebi directed NSE to disgorge profits of over Rs 1,000 crore and imposed a six-month ban on launching new derivative products

Press Trust of India May 23, 2019 08:06:35 IST
NSE gets interim relief from SAT in co-location case but has to deposit Rs 625 cr with Sebi in 2 weeks
  • NSE would have to continue to deposit revenues from the co-location facility to an escrow account.

  • In April, Sebi directed the exchange to disgorge profits of over Rs 1,000 crore and imposed a six-month ban on launching new derivative products

  • The NSE told the tribunal that it would not come out with an initial public offering for the next six months in compliance with the Sebi order.

Mumbai: The Securities Appellate Tribunal (SAT) on Wednesday stayed Sebi rulings that directed the National Stock Exchange (NSE) to disgorge profits of over Rs 625 crore in the co-location case. However, the tribunal directed the bourse to deposit Rs 625 crore with Sebi in two weeks.

The exchange would have to continue to deposit revenues from the co-location facility to an escrow account.

On Tuesday, the NSE moved the tribunal challenging Sebi's rulings against it in the co-location case.

NSE gets interim relief from SAT in colocation case but has to deposit Rs 625 cr with Sebi in 2 weeks

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

In April, Sebi directed the exchange to disgorge profits of over Rs 1,000 crore and imposed a six-month ban on launching new derivative products besides action against other entities, including some current and former officials.

The amount includes disgorgement of Rs 625 crore profit derived from the dissemination of data in the co-location case.

The tribunal has also ordered the exchange to initiate an inquiry against its staff to find out if they had given any treatment preferential in terms of access to market data to certain brokers.

The NSE told the tribunal that it would not come out with an initial public offering for the next six months in compliance with the Sebi order. In the co-location case, the regulator had barred the exchange from accessing the securities market for six months.

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