Chitra Ramkrishna challenges Sebi on TAP settlement document disclosure

Bourse, nine others had paid Rs 643 crore as settlement amount in connection with alleged irregularities in the Trading Access Point (TAP) architecture

Chitra Ramkrishna, who was chief executive officer (CEO) of the National Stock Exchange (NSE) between 2013 and 2016, has approached Securities Appellate Tribunal (SAT) challenging the Securities and Exchange Board of India’s (Sebi’s) decision to not disclose documents relied upon during the settlement in the alleged misuse of trading access point (TAP).

 

In October of 2024, NSE, its former MD and CEO Vikram Limaye, and eight others had settled the case by paying a settlement amount of Rs 643 crore to the market regulator.

 

Ramakrishna had sought the documents taken into account for reaching the settlement.

 

While taking up her appeal, SAT on Friday said that NSE had objected to the disclosure of documents. As there are nine other parties involved in the settlement, the tribunal has directed it to be communicated to them about filing of the appeal by Ramkrishna. The other parties in the settlement may share their opinion on maintaining confidentiality or disclosure.

 

Last year, Ramkrishna had got relief in the co-location matter when Sebi whole-time member Kamlesh Varshney had dropped the charges against her, NSE, Ravi Narain, and Anand Subramanian citing absence of evidence to support allegations.

 

The Sebi official had noted that while there were certain lapses at the NSE’s colocation facility, there was no evidence to establish any “collusion” or “connivance” with stock broker OPG Securities, who had gained “unfair” access to the exchange’s secondary server.

 

In the TAP matter, the market regulator had issued a show-cause to the exchange in February 2023 following its findings that there was a possibility of bypass in the system by brokers and that NSE did not take appropriate remedial steps.

 

TAP refers to a software application deployed by NSE and used by stock brokers to establish communication (orders/trades) with its trading system. It was launched in 2008 and was continued till September 2019 for the equity segment. The exchange had introduced ‘Direct Connect’ as an alternative to TAP in 2016.

 

The exchange had filed a settlement application before the regulator first in 2023 and then a revised application in August 2024.

 

Under the settlement proceedings norms, the matters can be settled without admitting or denying the findings by the regulator. The settlement amount is by a high powered advisory committee (HPAC) and later approved by a panel of whole-time members (WTMs) of Sebi.