NSE was allowing preferential access to brokers

Isnt this amazing friends. The national stock exchange was allowing preferential access to trades for brokers duping the common investor. The exchange would have been shut in many countries for such violation.

The Securities and Exchange Board of India has asked NSE to pay Rs 687.47 crore through two separate orders on Tuesday
The stock market regulator has asked India’s largest stock exchange by traded volume NSE to pay over Rs 1000 crore over a scandal which allowed some brokers to make money through gaining preferential access to the stock exchange servers.
A look at the exchange disclosures shows that it has provided for nearly Rs 2000 crore as provisions, pending directions from the Securities and Exchange Board of India (Sebi).
“SEBI has directed that pending completion of investigation to the satisfaction of SEBI, all revenues emanating from colocation facility including the transaction charges on the trades executed through colocation facility with effect from September2016 be transferred to a separate bank account. Accordingly, as of December 31, 2018, an amount of Rs. 1,994.77 crores was transferred to a separate bank account and the same has been invested as per the Company's investment policy as approved by the Board of Directors,” said a note to the December 2018 financial statement.
It had also said that the investment have been shown as ‘restricted’. This is because investigations into the charges were ongoing at the time. A whistleblower letter had detailed the issues which related to the bourse’s co-location servers. These servers are located close to the exchange and allow brokers to shave fractions of a second off the time it requires to execute a trade. Some brokers had unfair access to these servers compared to others who had also signed up for the service. This allowed them to make money at the cost of other market participants. A Sebi investigation had been ongoing.
“The management is of the view that pending conclusion of these matter with SEBI, a reliable estimate of the obligation in respect of these matter cannot be presently made and therefore no provision / adjustment to this effect has been made in the financial results,” the December 2018 financials had said.
The Securities and Exchange Board of India has asked it to pay Rs 687.47 crore through two separate orders on Tuesday.
One order required the National Stock Exchange to disgorge “an amount of Rs 624.89 crores, as ascertained in para 9.3 above along with interest calculated at the rate of 12% per annum from April 01, 2014 onwards to the Investor Protection and Education Fund (IPEF).”
A second order placed an additional sum of little over Rs 60 crore.
“Noticee no 1 (NSE) is directed to deposit a sum of Rs 62.58 Crores ...along with interest calculated at the rate of 12% p a from September 11, 2015 till the actual date of payment, to IPEF of Sebi,” it said.
The amount increases to over Rs 1000 crore after adding interest. more  

View all 20 comments Below 20 comments
It would have served the purpose by winding up NSE. There is no need for duplication. more  
Nse top official and big brokers doing this all culprits must be punished even those brokers who had taken benefit of this should also be punished and not only exchange more  
Will be amusing to see if anyone really gets punished. more  
Even though the nature of the scandal is not understood by me, I wonder how will the faith of the public rest with such institutions? Should they not be above board? Penalising the ex MDs means they were in knowledge of the wrong doing OR they are the ones who initiated preferential treatment? Who is going to compensate? more  
Back entry is available for all govt operation. Wrong persons reach right place. more  
Post a Comment

Related Posts

    • Not to take Daikin AC

      I purchased one 1.5 T daikin AC from one shop of Basudevpur, Bhadrak. But the AC is not cooling properly. After doing many request service engineer came two times. First time checked but condition ...

      By Paresh Dey
    • Why is MDR a percentage of transaction value

      Why cant MDR charge be capped at say INR 20. So make it 2% percent of transaction say till txn value 1000 and above that it should be capped at INR 20. That way if I buy 50,000 washing machine on ...

      By Ruchika Mistry
    • Restaurant Service Charge: Recent Experiences

      With this post we would like to seek your latest experiences in regards to restaurant service charge in the last few months.As a reference, Please find attached the Restaurant Service Charge aware...

      By Dept. of Consumer Affairs (Government of India)
    • Daikin refusing to replace damaged AC

      TL;DR I purchased a Daikin AC from amazon and I found it defective after a month. I contacted Daikin regarding this and they said there was no damage at first. Finally they offered me repair but I ...

      By Tarun Kumar Reddy
    • Solutions to improve Food Ordering eCommerce apps/sites

      Below are some of the key issues raised by you in regards to food related eCommerce sites and apps.Kindly review the same and help identify solutions that must be implemented to make these apps mor...

      By Dept. of Consumer Affairs (Government of India)
    • PVR and others convenience fee loot

      On one hand our respected PM is propogaing digital india on other hand these brands like PVR, book my show and many many others are charging convenience fee for doing transaction online. Some like...

      By Sudesh Rai
    • False information to get subscription from customer

      I received a call from Videocon d2h call centre regarding channel No 131 which is Comedy channel. The call centre person told that they are giving the channel @ Rs 1 for 7 days and if you like it, ...

      By Satya Pratap Detha
    • Misguided by Flipkart

      I ordered a product from flipkart.com and it was delivered on time when i opened it i realised that i had ordered pack of 6 and got only 5 pieces and these 5 pieces were just tied with the rubber b...

      By Vaibhav Kamath
    • Service deficiency by the telecom operators & forcing customers to pay full charges

      I had mobile connection with Airtel, faced immense problem regarding my previous office telephone bills and internet connections. Repeated request through customer service number, their nodal offic...

      By Anuradha Bhatta
    • Charging of convenience fee must stop - Consumer Minsitry act pls

      Why do services like booking tickets (flights, movies, whatever have you) apply a convenience charge for online transactions? Isn’t the customer making it more convenient for them by not requ...

      By Vishal Khanna
    • Kent RO fraud

      I have purchased Kent RO 5 months back. Continue giving problem. Today stopped working. No one is listening. Very bad..

      By Sumit Mittal
Share To
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)