SAT gives 4 weeks to NSE, others in co-location case

SAT gives 4 weeks to NSE, others in co-location case

A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai. (Reuters Photo)

Securities Appellate Tribunal (SAT) on Wednesday 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, market watchdog Sebi had ordered NSE to disgorge Rs 1,000 crore including 12 per cent interest and had also asked Ramkrishna and three others 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 the people punished 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 committed fraudulent and unfair trade practice as contemplated under the Sebi PFUTP (prohibition of fraudulent and unfair trade practices) regulations.