SEBI bans NSE
National Biz
Typography

User Rating: 0 / 5

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive
 
In an unprecedented move, Market regulator Securities and Exchange Board of India has directed the National Stock Exchange to 'disgorge' Rs 625 crore with 12 percent per annum interest in the co-location case. 
In an unprecedented move, Market regulator Securities and Exchange Board of India has directed the National Stock Exchange to 'disgorge' Rs 625 crore with 12 percent per annum interest in the co-location case. 
The regulator has also barred the exchange from the securities market for six months.
 
Further SEBI has said that the NSE shall be prohibited from accessing the securities market directly or indirectly for a period of six months from the date of this order; and the exchange shall carry out System Audit at frequent intervals, after through appraisal of the technological changes introduced from time to time; reconstitute its Standing Committee on Technology at regular intervals to take stock of technological issues, and frame a clear policy on administering whistle blower complaints.
 
SEBI said that NSE did not exercise due diligence while putting in place TBT (Tick-by-Tick) architecture.
 
NSE's former MD and CEO Ravi Narain has been directed to disgorge 25 percent of his salary drawn for FY 2010-11 to 2012-13 to the Investor Protection and Education Fund (IPEF).
 
Chitra Ramkrishna, former MD & CEO of NSE will also have to disgorge 25 percent of the salary drawn for FY 2013-14, to the IPEF. BOth will have to deposit the same within a period of 45 days.
 
Both Narain and Ramkrishna have been prohibited from associating with a listed company or a market Infrastructure Institution or any other market intermediary for a period of five years.
Sign up via our free email subscription service to receive notifications when new information is available.