Street Signs: Beefing up colocation facility, auditors on the run & more

NSE to expand colocation facility offerings, the allotments for these racks are to be done over the next six months by the first-in, first-out method

First-in, first-out: More racks for colo

The National Stock Exchange (NSE) has announced that participants in its colocation (colo) facility will be able to apply for additional racks. The allotments for these racks are to be done over the next six months by the first-in, first-out method, the exchange said in a communiqué. Additionally, the exchange has also increased the maximum permissible internet protocol limits by up to 50 per cent. Expanding the colo facility will add to the exchange’s top line. In 2022-23, the NSE scooped up Rs 633 crore as colo charges, up from Rs 433 crore the previous year. The NSE’s colo facility, launched in 2009, allows traders and brokers to establish their information technology servers on the premises of the bourse’s data centres in return for a fee. These participants can access stock price information quicker, resulting in faster trade execution.

Corner office shuffle at fund houses

ICICI Prudential Asset Management Company (AMC) has announced the elevation of Manish Banthia to the position of chief investment officer (CIO)-fixed income as the current CIO Rahul Goswami is set to vacate the position next week. Goswami, who headed the debt team at the AMC for over a decade, is said to be headed to Franklin Templeton Mutual Fund. The appointment comes at a time when Franklin Templeton is looking to restore investor confidence in its debt schemes, dented by the shuttering of six debt schemes in 2020. Last week, the fund house paid another Rs 178 crore to investors in wound-up debt schemes. With the latest payment, the fund house has made complete payments to investors in five of the six debt schemes.

The curious case of disappearing auditors

With the capital markets regulator having tightened its oversight of financial fraud, auditors have been swift in disassociating themselves from red-flagged companies. Earlier this month, the auditor of one company resigned, citing governance lapses and imbalances on the board. Another company claimed that its chartered accountant (CA) had disappeared and was not answering calls. “Several auditors are facing regulatory heat. Gone are the days when they would work with any company to make money,” says an industry expert. The curious case of the disappeared CA is from Milestone Furniture, which at present does not have a managing director, chief executive officer or company secretary. The promoter’s holding in the company stands at zero. Interestingly, while the company held its board meeting on May 25, the ‘disappeared’ CA’s approval was seen on another company’s financial statements the following day.