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SAT gives four weeks to NSE, ex-officials to file reply in co-location case

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SAT gives four weeks to NSE, ex-officials to file reply in co-location case
21 September 2019

Securities Appellate Tribunal (SAT) has asked NSE and its ex-officials, including the former CEO Chitra Ramkrishna, to file their rejoinders within four weeks in their plea against Sebi that penalised them in the co-location case.

The tribunal also fixed November 27, as the date for the disposal of the case and said no further extension will be granted to anyone.

On April 30, capital market regulator Sebi had ordered NSE to disgorge Rs 1,000 crore including 12 per cent interest, and had also asked exchange’s then joint managing director Chitra Ramkrishna and other three employees to pay back 25 per cent of their salaries for the period involving the scam between 2011 and 2014 that came to light in 2015.

NSE and its officials and employees penalised, challenged the order at the SAT on May 21.

The co-location case dates back to 2015, when a whistleblower wrote to Sebi alleging that NSE was giving a few high-frequency traders and brokers preferential access to its trading platform which benefited both the parties at the cost of others.

The whistleblower had alleged that some brokers had figured out that the way to manipulate the system by becoming the first one to connect to the server-- preferably the one which was the faster.

Sebi said NSE violated the provisions of its regulation related to prevention of fraudulent and unfair trade practice, the Sebi PFUTP (prohibition of fraudulent and unfair trade practices) regulations.

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