Sebi disposes off proceedings against NSE in co-location probe
The market regulator has disposed off its proceedings against the National Stock Exchange (NSE), Ravi Narain, Chitra Ramkrishna, Anand Subramanian, and others concerning the exchange’s co-location services.
In an order released on September 13, the Securities and Exchange Board of India (Sebi) stated, “There is no dispute to the fact that NSE did not have a detailed defined policy for the use of Colo (co-location) facility. It even failed to monitor the use of the secondary server by TMs without having sufficient reason. The defence put forward by NSE about the issuance of welcome email in the form of ‘registration enablement mail’ at the time of providing Colo facility to TMs, can’t be said to be justifying its role as a first-level regulator.”The order further noted, “The issuance of guidelines without proper monitoring demonstrated a lack of due diligence.”
However, the order clarified that these findings do not address whether there was collusion between OPG and its directors with NSE and its senior management.
