Sebi slaps Rs 3 lakh fine on Share India Securities in NSE co-location case

The order came after Sebi received multiple complaints pertaining to allegations of malpractices with respect to the co-location facility provided by NSE (National Stock Exchange).

Published: 31st May 2022 12:45 PM  |   Last Updated: 31st May 2022 12:45 PM   |  A+A-

National Stock Exchange (NSE) (File photo | PTI)

National Stock Exchange (NSE) (File photo | PTI)

By PTI

NEW DELHI: Capital markets regulator Sebi on Monday imposed a fine of Rs 3 lakh on Share India Securities Ltd for flouting norms related to the National Stock Exchange co-location facility.

The order came after Sebi received multiple complaints pertaining to allegations of malpractices with respect to the co-location facility provided by NSE (National Stock Exchange).

In the wake of allegations of preferential access to the tick-by-tick data feed given by NSE to certain trading members, the matter was taken up for investigation by Sebi.

The noticee (Share India Securities) was one of the trading members identified for comprehensive investigation (including forensic audit) for primary and secondary server connects.

The stock broker logged into the secondary server in currency derivatives, cash market and futures and options during 2012-2014, as per Sebi order.

As per NSE's co-location guidelines, the secondary source for TBT (Tick-by-Tick) data is to be used in the event of non-availability of the TBT primary source and trading members should not routinely connect to the secondary server.

Further, as per available records, NSE advised the broker not to connect to the secondary server.

However, the broker continued to log in to the secondary server, Sebi noted.

The noticee connected frequently to the secondary server, which violated the NSE co-location guidelines, thereby also failing to exercise due skill care and diligence in conducting its trading operations, it added.

By circumventing the primary source regularly, the noticee engaged in conduct which undermined the trading system set up to provide fair and equitable access to all brokers connected to the exchange server.

Through such acts, Share India Securities flouted the provisions of the NSE by-laws and code of conduct specified under the stockbroker rule as well as PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) regulations.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp