SEBI Bars NSE from Capital Markets for 6 Months in Co-Location Scam

Two former NSE chief executive officers, Ravi Narain and Chitra Ramkrishna, asked to disgorge 25% of their salaries.

Business Standard

Two former NSE chief executive officers, Ravi Narain and Chitra Ramkrishna, asked to disgorge 25% of their salaries.

sebi bars nse from capital markets for 6 months in co location scam

The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai, India March 1, 2017. REUTERS/Shailesh Andrade/Files

New Delhi: The market regulator said on Tuesday the National Stock Exchange (NSE) did not exercise due diligence when putting in place a network that allowed high frequency traders unfair access to some network servers at the exchange.

The Securities and Exchange Board of India (SEBI) barred the NSE from raising money on the securities market directly or indirectly for six months.

The SEBI has been investigating allegations that the NSE officials provided high frequency traders unfair access through co-location servers placed at the site of exchange, which could speed up algorithmic trading.

It asked two former NSE chief executive officers, Ravi Narain and Chitra Ramkrishna, to "disgorge" 25% of their salaries drawn during a certain period.

Narain and Ramkrishna have been prohibited from "associating with a listed company or a Market Infrastructure Institution or any other market intermediary for a period of five years," SEBI said in a 104-page order.

NSE was asked to pay within 45 days about Rs 624.89 crore with an interest rate of 12% a year effective from April 2014 to the Investor Protection and Education Fund.

By arrangement with Business Standard.

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