The National Stock Exchange has said that the regulator's orders will not affect its functioning The National Stock Exchange (NSE) said on Wednesday that market regulator Sebi's orders will not affect its functioning as a recognised stock exchange.
The statement from the stock exchange came a day after the regulator, the Securities and Exchange Board of India, fined the National Stock Exchange (NSE) more than Rs 625 crore and barred it from raising money on securities markets for six months.
The National Stock Exchange said that normal trading will continue across all segments from Thursday, May 2.
Here are 10 things to know about the Sebi order on the National Stock Exchange (NSE):The markets regulator found that the National Stock Exchange had failed to ensure equal access for all brokers to the exchange's network servers.Tuesday's order followed a more than three-year investigation by Sebi into allegations that NSE officials had provided some high frequency traders unfair access through co-location servers placed at the site of exchange, which could speed up algorithmic trading.In one of the largest fines imposed by it, Sebi ordered the NSE to pay within 45 days about Rs 625 crore - the profit the stock exchange made from its co-location operations.The NSE has also been asked to pay an interest rate of 12 per cent a year effective from April 2014 to the Investor Protection and Education Fund.Analysts say the Sebi order on the NSE will not affect the markets."With this (the Sebi order), a hangover regarding the NSE IPO is gone," AK Prabhakar, head of research at IDBI Capital, told TheIndianSubcontinent.
"There is a roadmap now In a way it's positive.
It does not impact the trading sentiment at all."The NSE had originally planned to go public in 2017 but this was delayed due to an investigation into the co-location operations.In its statement on Wednesday, the NSE said trading in all segments will continue the next day.
The stock markets remained shut on Wednesday for the Maharashtra Day holiday.
The financial markets had also remained shut on Monday as the state voted for the general election.A spokesperson for the NSE had said on Tuesday: "NSE is in the process of examining SEBI Order passed today and will take appropriate steps as may be legally advised."NSE has a fully-integrated business model comprising exchange listings, trading services, clearing and settlement services, indexes, market data feeds, technology solutions and financial education offerings, according to its statement.(With inputs from Reuters)Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on TheIndianSubcontinent.com/elections.
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Election results will be out on May 23.