NSE files its reply in Money Life case

Bombay HC to hear the Rs 100-cr defamation matter next week

The National Stock Exchange (NSE) has filed a reply to the affidavit by journalists working for Money Life in its defamation suit in the Bombay High Court over articles on high-frequency trading.

In the filing in the court last week, the exchange has contended that the reply by senior journalists Debashis Basu and Sucheta Dalal does not provide conclusive proof of wrongdoing in the exchange. It further said the duo had not been able to establish any "corruption" within the bourse. The matter is scheduled for hearing on September 9.

In June, Money Life published a whistleblower's account that alleged various irregularities in the high-frequency trading systems of the NSE. It also published online the whistleblower's letter dated January 2015 addressed to the Securities and Exchange Board of India (Sebi). Dalal had received a copy of this anonymous letter in the post.

This was followed up with an article on July 8 seeking a probe into the matter. On July 21, the NSE said it had moved the Bombay High Court seeking damages of Rs 100 crore for alleged defamatory statements in these articles.

The Business Standard had reported last week that Basu and Dalal had filed a detailed affidavit saying the NSE was trying to stifle criticism and avoid scrutiny by moving court. They submitted that the exchange was given sufficient opportunity to present its version in line with fair journalistic principles.

In its response, the bourse has said it did not see any need to respond or offer any comment on the matter at that time.

Money Life had in its reply referred to several disputes the NSE was party to, including those with other journalists and publications.

The exchange has told the court that these matters have been adjudicated by appropriate authorities at various points of time and are not relevant to the present case. It termed these references as diversionary.

Dalal and Basu had said in their affidavit that "the subject matter of the impugned articles is a matter of public importance, since it highlights concerns raised regarding transparency and manipulation in one of the biggest stock exchanges of the country."

"The impugned articles cannot be termed as defamatory but were a bona fide journalistic exercise," they added. When hearing begins next week, they are likely to stick to this stand. They could also bring in additional facts, if necessary, during arguments.

Both the NSE and Money Life refused to comment for this report, stating the matter was sub judice.