NEW DELHI: The capital markets regulator Securities and Exchange Board of India has fined the National Stock Exchange Rs 7 crore in the ‘dark fiber’ case, widely known as NSE co-location caseit said in an order.
The case involved the alleged misappropriation of information from the exchanges’ computer servers to the stockbrokers.
The focus of the investigation was the role of stockbrokers who allegedly benefited from preferential access to the exchange system, including quantifying stockbroker profits.
Alongside the NSE, the capital markets regulator has imposed Rs 5 crore each on the exchange’s former chief executive, Chitra Ramakrishna, and the group operating officer Anand Subramanian.
Also, internet service provider Sampark Infotainment and stockbroker Way2Wealth were fined Rs 3 crore and Rs 6 crore respectively, the SEBI order said.
“…it is now clear that W2W and GKN, in consultation with the employees of NSE and Sampark have made significant gains due to the unfair latency advantage available to them,” the order reads.
According to the investigation conducted into this matter, it was alleged that Sampark had arranged the cabling in the collocation in such a way that some stockbrokers experienced lower latency compared to other trading members connected to Sampark.
The penalties must be paid 45 days after receipt of the order either by reminder, the SEBI said.
The case involved the alleged misappropriation of information from the exchanges’ computer servers to the stockbrokers.
The focus of the investigation was the role of stockbrokers who allegedly benefited from preferential access to the exchange system, including quantifying stockbroker profits.
Alongside the NSE, the capital markets regulator has imposed Rs 5 crore each on the exchange’s former chief executive, Chitra Ramakrishna, and the group operating officer Anand Subramanian.
Also, internet service provider Sampark Infotainment and stockbroker Way2Wealth were fined Rs 3 crore and Rs 6 crore respectively, the SEBI order said.
“…it is now clear that W2W and GKN, in consultation with the employees of NSE and Sampark have made significant gains due to the unfair latency advantage available to them,” the order reads.
According to the investigation conducted into this matter, it was alleged that Sampark had arranged the cabling in the collocation in such a way that some stockbrokers experienced lower latency compared to other trading members connected to Sampark.
The penalties must be paid 45 days after receipt of the order either by reminder, the SEBI said.
