INSUBCONTINENT EXCLUSIVE:
The Securities and Exchange Board of India has issued a fresh show-cause notice to the National Stock Exchange and some of the key officials
few high-frequency traders and brokers to its trading platform, said three people close to the development.
The regulator has also served
been sent to OPG Securities and technology provider Sampark Infotainment, sources said.
In May last year, Sebi had set up an internal
investigating authority to look into the alleged connivance between NSE officials and brokers who have been accused of misusing the
The new show cause notice pertains to alleged connivance between NSE officials and brokers who have been accused of misusing the co-location
facility.The earlier one was related to violation of SECC (stock exchanges and clearing corporation) regulations by NSE and its
officials.
The fresh notice has been issued under regulation 3 and 4 of the Fraudulent and Unfair Trade Practices (FUTP) regulations on
Wednesday regulations and violation of provisions of Securities Contract (Regulation) Act.
These regulation prohibits
manipulative,fraudulent and unfair trade practices in the securities market.
The regulator has initiated action under 11B which empowers
Sebi to give any directions to the exchange and individuals involved
Sebi had also engaged forensic experts to aid in its investigation in the NSE case.
The regulator had earlier issued show-cause notices to
co-location system.
The case dates back to 2015, when a whistle blower wrote a letter to Sebi alleging that NSE gave preferential access to
stock broker Sanjay Gupta, owner of OPG Securities, and unidentified officials at market regulator Sebi and the National Stock Exchange for
We have initiated enforcement action against the institution and individuals and in the next few days we will complete the enforcement
