SEBI completes probe against NSE, OPG Securities in co-location case, says government

New Delhi: Markets regulator Sebi has completed its investigation against the NSE and OPG Securities in the co-location matter and has initiated enforcement proceedings against them, Parliament was informed on Friday.

The Securities and Exchange Board of India (Sebi) was 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.

The National Stock Exchange's (NSE) co-location facility allows low latency and fast execution to trading members. This setup of server gives a 10:1 speed advantage in comparison to other brokers.

Sebi logo. Reuters.

Sebi logo. Reuters.

"Sebi has completed its investigation against NSE and OPG Securities in the co-location matter and has initiated enforcement proceedings against them," Minister of State for Finance Pon Radhakrishnan said in a written reply to the Lok Sabha.

The regulator has examined the alleged role of one of the professor associated with National Institute of Public Finance and Policy (NIPFP) in relation to his association with the NSE and accordingly, enforcement proceedings have been initiated against various entities or persons including the professor, he added.

"Sebi examination, inter alia, observed that the professor had employed a device/scheme/artifice, wherein the confidential and sensitive data provided by NSE was misused in fraudulent manner, which resulted in compromising the integrity of the securities market," the minister said.

"Also, special treatment was given to the professor by NSE to access confidential and sensitive data without formal agreement and data use contract," he added.

Based on the findings of the investigation, Sebi has initiated enforcement proceedings against the NSE, its former and present officials, stock brokers, their employees and other connected entities in the matter, Radhakrishnan said.


Updated Date: Aug 10, 2018 19:15 PM

Also Watch

Rethinking pornography: Cyber Sexy author Richa Kaul Padte makes the case for decriminalising porn in India
  • Friday, July 27, 2018 First Day First Showsha — Reviewing Tom Cruise's Mission: Impossible - Fallout in 10 questions
  • Friday, July 27, 2018 It's a Wrap: Karwaan stars Dulquer Salmaan, Mithila Palkar in conversation with Parul Sharma
  • Friday, July 27, 2018 3 alternatives to WhatsApp | What The App
  • Friday, July 27, 2018 Manika Batra interview: Table Tennis star looks back at Commonwealth Games 2018 success, reveals her diet plan and more

Also See