Colocation case: NSE gets relief from tribunal

Colocation case: NSE gets relief from tribunal

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National Stock Exchange (NSE) on Monday got relief from the tribunal in colocation case, news agency Reuters reported citing sources. NSE will pay Rs 100 crore in penalties to India‘s market regulator SEBI for lapses, the report said.

Sebi in 2019 asked NSE to pay Rs 687 crore in disgorgement along with interest. The regulator also ordered former NSE MD & CEO Chitra Ramkrishna, Ravi Narain and a few other officials to disgorge 25% of the remuneration they received from FY11 to FY13. NSE and the officials implicated in the case appealed against this Sebi order at the Securities Appellate Tribunal (SAT).

SAT ruled that SEBI failed to establish illegal gains, and disgorgement of over Rs 10 billion has been set aside against Ramkrishna and Narain.

The Central Bureau of Investigation in March 2022 arrested Chitra Ramkrishna, former CEO of National Stock Exchange (NSE) in connection with its ongoing probe in the NSE co-location scandal.

The Court had observed that the former NSE CEO had “introduced a non-existing person to mislead the investigative agency which may also prima facie show her connivance in the matter”. The agency will confront Ramkrishna with her ex advisor Anand Subramanian who is already in the custody of CBI, said people in the know.

A February 11 order by the Sebi had alleged the unauthorised exchange of emails containing confidential information between Ramkrishna and an unidentified individual referred to as a yogi. The NSE is India’s biggest exchange.

The NSE co-location case stems from allegations of unfair, preferential access to certain entities in 2012-14. Interest in the case revived after the Sebi order of February 11 that contained details of email exchanges between Ramkrishna and the so-called mystic, many of which contained confidential information and urged the repeated advancement of Subramanian, despite his apparent lack of qualifications.

Several former officials have been questioned.

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