New Delhi: Capital markets regulator Securities and Exchange Board of India has imposed a fine of Rs 7 crore on the National Stock Exchange in the ‘dark fibre’ case which is widely known. NSE Co-location CaseSaid it in an order.
The matter revolves around the alleged improper dissemination of information from the computer servers of the market exchanges to the stock brokers.
The focus of the investigation was on the role of stockbrokers who were alleged to have benefited from preferential access to the exchange’s system, including quantification of profits of stockbrokers.
Besides NSE, capital markets regulator slaps Rs 5 crore each on ex-MD of stock exchange Chitra Ramakrishna and group operating officer Anand Subramaniam,
It imposed a fine of Rs 3 crore and Rs 6 crore on brokers Internet service provider Sampark Infotainment and stockbroker Way2Wealth, respectively. SEBI said the order.
“… it is now established that in collusion with the employees of W2W and GKN, NSE And the contact made significant profits on account of the undue latency advantage available to them,” the order said.
As per the investigation conducted in the case, it was alleged that Sampark had arranged the cabling in the co-location in such a way that some of the stockbrokers had less latency as compared to other trading members associated with Sampark.
Sebi said the payment of penalty should be made within 45 days of the receipt of the order either through demand draft.
The matter revolves around the alleged improper dissemination of information from the computer servers of the market exchanges to the stock brokers.
The focus of the investigation was on the role of stockbrokers who were alleged to have benefited from preferential access to the exchange’s system, including quantification of profits of stockbrokers.
Besides NSE, capital markets regulator slaps Rs 5 crore each on ex-MD of stock exchange Chitra Ramakrishna and group operating officer Anand Subramaniam,
It imposed a fine of Rs 3 crore and Rs 6 crore on brokers Internet service provider Sampark Infotainment and stockbroker Way2Wealth, respectively. SEBI said the order.
“… it is now established that in collusion with the employees of W2W and GKN, NSE And the contact made significant profits on account of the undue latency advantage available to them,” the order said.
As per the investigation conducted in the case, it was alleged that Sampark had arranged the cabling in the co-location in such a way that some of the stockbrokers had less latency as compared to other trading members associated with Sampark.
Sebi said the payment of penalty should be made within 45 days of the receipt of the order either through demand draft.