(LiveMint)
The markets regulator cracked the whip on National Stock Exchange of India Ltd (NSE), directing it to deposit nearly Rs 1,000 crore in an investor fund and barring it from accessing capital markets for six months, besides clawing back a chunk of salaries from its two former CEOs, for lapses in its algorithmic trading systems and co-location services.
In a set of five orders issued , the Securities and Exchange Board of India (Sebi) asked NSE to “disgorge” its profits from co-location worth Rs 624.89 crore at 12% interest to the Investor Protection and Education Fund (IPEF). The amount with interest would add up to about Rs 1,000 crore. The Sebi order also pushes back NSE’s much-delayed Rs10,000 crore initial share sale well beyond six months.
The Sebi order said NSE had failed to ensure equal and fair access to all members when they were using its algorithmic trading platform and co-location services. Between 2011 and 2014, under co-location services, some brokers trading from the same premises where NSE’s algorithmic trading servers were located were able to get faster access to the trading systems, thereby gaining an unfair advantage over others.
