INSUBCONTINENT EXCLUSIVE:
MUMBAI: The National Stock Exchange (NSE) said it will challenge market regulator Sebi's order penalizing it in the co-location case.
The
orders passed by Sebi and has sought legal advice thereon
Having regard thereto, the company believes that it has strong grounds to contest the above orders including monetary liability (including
Accordingly, no provision for any liability in this regard is considered necessary in the financial statements for the year ended March 31,
interim relief from the SAT.
Last month, Sebi directed the NSE to pay Rs 687 crore and barred it from accessing the securities market for
six months following investigations into the collocation of servers that gave an unfair advantage to some traders
preferential access to a few high-frequency traders and brokers to the exchange's trading platform.
Co-location refers to a system where
traders are allowed to place servers in close proximity to those of an exchange, helping faster execution of trades.
NSE said the regulator
above three orders which are currently pending for hearing before Sebi," the exchange said.
Three show cause notices were issued by the
regulator to the NSE and to some of its employees, including former employees, in respect of the preferential access to tick by tick data in
co-location facility, dark fibre point-to-point connectivity and corporate governance related issues.
Along with interest, the penalty on
NSE will likely add up to over Rs 1,000 crore