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NSE to challenge Sebi rulings in co-location case

Press Trust of India  |  Mumbai 

Largest stock NSE Friday said it will soon move the against Sebi rulings in the co-location case as there are "strong grounds" to challenge the orders.

In April, Sebi directed the exchange to disgorge profits worth over Rs 1,000 crore and imposed a six-month ban on launching new besides action against other entities, including some current and former officials.

The watchdog had passed five separate orders, together running into 400 pages, related to the co-location case, wherein some entities allegedly got preferential access in high frequency trading.

"... the company believes that it has strong grounds to contest the above orders including monetary liability (including from adjudication proceedings) raised by Sebi," the NSE said.

"The company intends to file appeals before the (SAT) against the orders passed by Sebi," the exchange said in its annual accounts statement signed by its MD and

Earlier, Sebi had directed it to carry out an investigation, including forensic examination by independent external agencies in respect of certain aspects of NSE's co- location facility.

Pending completion of the investigations, all revenues emanating from the co-location facility with effect from September 2016 were being transferred to a Accordingly, Rs 2,258.71 crore has been transferred to a and invested as of March 31.

In the books of accounts, these investments along with accruals have been shown under restricted/earmarked investments and The has not made any provision for any liability because of Sebi order, NSE said.

Three current executives of the exchange and former have received interim stay from the tribunal on Sebi orders.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 21:16 IST