Markets regulator SEBI directed National Stock Exchange to pay more than Rs625 crore in the case of misuse of its co-location facility. SEBI has been probing alleged lapses in high-frequency trading offered through NSE’s co-location facility. The amount, if considered with simple interest, would come to little less than Rs1,000 crore. If it involves a compound interest, the fine could amount to around Rs1,300 crore.
Besides, two former chief executive officers, Ravi Narain and Chitra Ramkrishna have been asked to disgorge 25% of respective salaries drawn during a certain period. According to the order, the exchange has also been prohibited from accessing the securities market directly or indirectly for six months.
Source- The Hindu Business Line
Static/Current Takeaways Important For LIC AAO Mains 2019:
- SEBI Headquarter: Mumbai, Chairperson: Ajay Tyagi.
- The National Stock Exchange of India Ltd. is the second largest in the world by nos. of trades in equity shares from January to June 2018, according to World Federation of Exchanges (WFE) report.
- NSE launched electronic screen-based trading in 1994.
- Mr. Vikram Limaye is the Managing Director and CEO of NSE.