The exchange had reportedly filed a plea under the consent mechanism which allows entities to settle any violation without admission or denial of guilt
NSE had sought to settle under Sebi s consent mechanism, allowing resolution without admitting guilt. Sebi rejected NSE s plea and will issue a regulatory order instead, the sources noted.
The agency has already arrested Chitra Ramkrishna, former CEO and Managing Director of NSE and Anand Subramanian, former Group Operating Officer of the market, officials said.
NSE co-location case: The CBI has arrested Sanjay Gupta, owner and promoter of Delhi-based OPG Securities Pvt. Ltd, in connection with the NSE co-location scam in which brokers allegedly abused the facility to make gains by getting early access to the stock market, officials said on Wednesday.
Mumbai: The Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 5.20 crore on OPG Securities and its directors in the co-location case. The OPG Securities directors who have been penalised include Sanjay Gupta, Sangeeta Gupta and Om Prakash Gupta.
Sebi alleged that OPG used NSE’s system to its advantage by having an arrangement with an NSE staff that helped it to connect first. The first one to connect to the lowest load server would get advantage in terms of receiving data faster than others.
Sebi had asked the NSE board to initiate a forensic investigation of all the concerns raised by it, for which the NSE board appointed Deloitte. The regulator had instructed OPG Securities to give access to computers, terminals and electronic records to Deloitte. It also directed OPG not to delete or make modification to any of the records, emails, communications and IT logs.