NSE swings into black, posts Rs 241 cr in Q4

The NSE has swung into profitability with a net profit of Rs 241.30 crore for the March quarter and earned total revenue of over Rs 375 crore from co-location facility since September that has been transferred into a separate account under Sebi directive.
The National Stock Exchange (NSE) had posted a net loss of Rs 250.67 crore during the January-March quarter of 2015- 16.
The exchange's total income from operation increased to Rs 453.52 crore in the fourth quarter, from Rs 406.66 crore a year earlier, as per the latest update available on the NSE website.
Market regulator Sebi has directed the NSE to carry out an investigation, including forensic examination, by an independent external agency in respect of its co-location facility.

"Sebi has directed that pending completion of investigation to the satisfaction of Sebi, all revenues emanating from co-location facility including the transaction charges on the trades executed through co-location facility be placed in a separate bank account," the NSE said.
Accordingly, an amount totalling Rs 375.51 crore was transferred to a separate bank account during September 2016 to March 2017.

Co-location in market parlance refers to brokers locating their servers on the premises of the exchange. This reduces the time for an order and provides speed advantage over those who are farther away from the premises.
For the full 2016-17, NSE's net profit surged to Rs 1,012.79 crore as against Rs 446.52 crore in 2015-16.

The bourse's total income from operations rose to Rs 1,690.50 crore in 2016-17, from the previous year's Rs 1,472.97 crore.