NSE co-location case:- New Delhi, The market regulator, Indian Securities, and Exchange Board of India (SEBI) has instructed the National Stock Exchange (NSE) on Tuesday to favor the use of unauthorized trading software, networks and servers in favor of some brokers Pay Rs 1,100 crore in Where the main trading servers of the Exchange were located. The market regulator has restricted the exchange’s former Managing Director (MD), Ravi Narain and Chitra Ramkrishna from the market for a period of five years. According to the TOI report, for this period they were instructed to end some part of their salary when the co-take scam was going on.
During this period the exchange cannot come out with its IPO. It has asked the NSE not to start any new derivative contract for the next six months. Apart from five separate orders, in addition to banning the three brokers for five years from the market, it has asked them to end illegal profits and interest, which is about Rs. 51 crores.
NSE co-location case: SEBI fines NSE Rs 1,100 crore, bans 2 ex-MDs
SEBI has banned Ajay Shah, a former finance ministry official and a professor of economics, to join any listed company for a period of two years. They used confidential trading data from the exchange for their personal benefits. Many other people and software vendors have also been banned or fined by SEBI, who helped brokers to make illegal profits. In May 2013, Ravi Narain had resigned as MD of NSE to take charge as his Vice President, while Chitra Ramkrishna took over as the MD of the exchange.
The co-location of the server scam or co-op scam is preferential treatment by the NSE to give access to three trading partners to their trading servers. It continued between 2011 and 2014. In this, co-location servers are established by the brokers right next to the trading server of the Exchange, which helps brokerages split in comparison to trading data-second in rapid access. Others who have servers throughout the country.
High-speed computers are used to earn huge profits for high-frequency trading. It was also included by the unauthorized vendors to access the optical fiber network within the premises of the exchange to gain access to the exchange’s servers.
NSE co-location case: According to the national publication, an NSE spokesman said that the exchange market regulator was in the process of scrutinizing the order of SEBI and could be legally advised. Ravi Narain and Chitra Ramkrishna did not respond to calls and messages made their comments. For more updates, you can visit www.indiatimelines.com.
According to NSE’s Vikram Limaye, the order will not affect the regular trading on the NSE and the rock-solid on the NSE and the Indian market for all investors.
G Mahalingam, a full-time member of SEBI, said in the order, “The NSE has dealt with a fraudulent and unfair trade practice under SEBI (PFUTP) regulations, it is established beyond doubt that the NSE has not used the expected diligence. Tick-by-Tick (TBT) architecture (a data feed which provides information about any changes in the order book on NSE). “