MUMBAI: In a scathing indictment of the country’s largest bourse, capital market regulator Sebi on Tuesday barred NSE from accessing the capital markets for six months and ordered it to ‘disgorge’ `624.89 crore for giving unfair access and speed to certain traders.
In the case popularly known as the co-location case, Sebi found NSE guilty of not exercising due diligence with respect to Tick-by-Tick data architecture. This, according to Sebi, gave undue advantage to certain players over others.
Sebi also ordered NSE to recover 25 per cent of salaries paid to former managing directors Ravi Narain and Chitra Ramkrishna for a specific period. The watchdog prohibited them from being associated with a listed company, market infrastructure institution or market intermediary for five years.
Reacting to the Sebi order, NSE said it will not impact the functioning of the markets. “It has no impact on the market, it has no impact on NSE functioning as a stock exchange,” Vikram Limaye, managing director and CEO, National Stock Exchange said in an interview with CNBC-TV18.The immediate interpretation of the Sebi order is that if NSE had any plans to go public and raise money from the markets, that cannot be done for the next six months, he explained.
Do frequent system audits, bourse told
The markets regulator also asked the NSE to carry out system audit at frequent intervals after thorough appraisal of all the technological changes introduced from time to time