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Limaye expects forensic reports on co-location case in a month

Press Trust of India  |  Mumbai 

Looking for appropriate and a timely resolution to the ongoing probe into the co-location issue, newly-appointed chief executive Vikram Limaye today said consultancy EY is likely to submit its forensic audit report on the issue in a month.

On his first day in office as NSE's managing director and chief executive, Limaye told PTI that his top priority is to resolve the co-location issue and to ensure that the exchange fully cooperates with the regulator on the same.


The case relates to some brokers allegedly getting preferential access through co-location facility, early login and access to the 'dark fibre'-- which can allow them a split- second faster access to datafeed of the exchange. Even a split-second faster access can yield huge gains for a trader.

Through these facilities the traders in the currency derivatives and segments allegedly made huge gains.

While has engaged Deloitte for a forensic audit of its equity derivatives platform, it has asked EY to carry out a forensic audit into markets and currency derivative platforms of the is still underway.

"There are one or two things which are awaited. One is the EY forensic audit report on currency derivatives and the same on markets is likely to be out in three to four weeks...Resolution of the co-location issue is my top priority and our dialogue with in this regard is ongoing," Limaye told PTI over the phone.

"While I can't give a timeline on when the probes into the matter would be completed as has its own process, we will ensure full cooperation with the regulator so that the issue is appropriately resolved," he added.

The banker-turned marketman Limaye also said he would like to at the earliest plug any gaps in the exchange's system and would work towards strengthening the "controls and processes".

Earlier in the day he told television channels that taking public through a listing can happen only after the regulatory issues related to co-location case was resolved. "Obviously IPO is an important priority for me but that would happen only once all the regulatory issues are sorted out first," he said.

He also noted that it is significant for the exchange to improve relationships with all the stakeholders, including the regulators, government, the media and the employees.

"It is also important for to improve stakeholder relationships, which means relationship with the government, the regulator, clients, the media and certainly the employees. It's important to make sure that all stakeholder relationships are better than what has been in the past," he said.

Asked about last week's crash of platform for more than three hours, Limaye told PTI that while its not "unusual" to have software-related issues, the exchange has had numerous conversations with the service vendors and is awaiting a report on the issue.

He said the exchange's standing committee on technology will review the problem and approve measures to prevent recurrence of such glitches.

"The root cause of the problem would be addressed and we will discuss and report it to the finance ministry and Sebi," Limaye said.

Asked if he is looking to rejig the team at NSE, Limaye said, "the exchange has a royal and committed workforce. However, I will see if there are any gaps or re- positioning required".

In his communication to employees earlier in the day, Limaye said "while currently the institution is faced with certain challenges, I am confident we will overcome these issues by working together and emerge as a stronger and better organisation".

"I am very optimistic about the future and I strongly believe the best is yet to come for the Group. Let's work together with a sense of purpose, positive energy, creativity/ innovation and collaboration," he added.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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