NSE submits 2 audit reports to Sebi on co-location matter

Sources say the findings of the latest audit reports will help Sebi decide on the NSE's consent plea to settle the co-location matter

The National Stock Exchange (NSE) on Tuesday submitted two separate audit reports to the Securities and Exchange Board of India (Sebi), prepared by EY and Indian School of Business (ISB), Hyderabad, relating to the co-location matter.

Sebi began investigating the matter in early 2015, after multiple complaints that some brokers allegedly got preferential access at the exchange’s co-location facility.

Deloitte had done a forensic audit on the matter. Its report said Delhi-based brokerage firm OPG Securities was consistently able to connect to the exchange’s trading system ahead of other trading members. The report said this would not have been possible without knowledge