Strong grounds to contest Sebi order in co-location case: NSE

Mumbai, May 17: The National Stock Exchange (NSE) believes it has ‘strong grounds’ to contest orders passed by the Securities and Exchange Board of India (Sebi) in the co-location (colo) case. The country’s largest stock exchange plans to move the Securities Appelate Tribunal (SAT) an appellate body challenging the three orders passed by the market regulator directing it, among other things, to disgorge over Rs 1,000 crore.
“The company (NSE) has received the orders passed by Sebi and has sought legal advise thereon. Having regard thereto, the company believes that it has strong grounds to contest the above orders, including monetary liability (including from adjudication proceedings) raised by Sebi. The company intends to file appeals before the Hon’ble Securities Appellate Tribunal (SAT) against the orders passed by Sebi,” Vikram Limaye, managing director and CEO, NSE is quoted saying in board meeting notes.
NSE’s board of directors held a meeting on Thursday to announce its financial results for 2018-19, where the Sebi action in the co-lo case was also discussed.
On April 30, Sebi passed multiple orders against NSE and some of its current and former employees for lapses at its co-lo facility that granted unfair access of data feeds to certain brokers. In one order, Sebi directed NSE to disgorge Rs 625 crores alongwith an interest of 12 per cent per annum from April 01, 2014 till the actual date of payment. The regulator has also barred the exchange from raising funds from the market for a period of six months from the date of the order. In another order, Sebi has asked the exchange to deposit Rs 63 crore along with 12 per cent interest from September 11, 2015. In a third order, Sebi has given remedial directions to NSE to improve governance and transparency at the exchange.