Sebi fines Yug Securities Rs 3 lakh in co-location matter

Says firm connected to NSE's secondary server connection roughly on 58%, or 263 days, out of a total around 457 trading days in the cash market segment between 2013 and 2014

Market regulator Sebi on Tuesday slapped a penalty of Rs 300,000 on Yug Securities for violating the code of conduct specified under the Broker Regulations. The regulator in its order said Yug Securities connected to NSE’s secondary server connection roughly on 58 per cent, or 263 days, out of a total around 457 trading days in the cash market segment between 2013 and 2014. Brokers are allowed to use the secondary server only in case of disconnection or failure to connect to the primary server. Sebi’s order however states that it didn’t find anything to show any collusion between Yug Securities and NSE nor did it record a finding of any  unfair  advantage or gain  by logging into the secondary servers. As part of the investigation into lapses at NSE colocation facilities, Sebi has acted against several brokers who repeatedly connected to the secondary server without a justifiable cause.