The Securities and Exchange Board of India (SEBI) has prohibited leading stock exchange NSE from accessing the securities market directly or indirectly for a period of six months in the co-location case.
The market regulator has also directed NSE to disgorge an amount of Rs 624.89 crores along with interest rate of 12 per cent per annum from April 1, 2014 onwards to the Investor Protection and Education Fund (IPEF) created by SEBI within 45 days.
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The regulator has also barred the exchange from the securities market for six months, which means that the NSE cannot access the capital market in terms of IPO for six months.
The SEBI has also found the two former managing directors of NSE guilty in the case. NSE’s former MD and CEO Ravi Narain has been directed to disgorge 25 per cent of his salary drawn for FY 2010-11 to 2012-13 to the IPEF within 45 days. While, former MD Chitra Ramkrishna has also been asked to disgorge 25 per cent of the salary, drawn for the FY 2013-14, to the IPEF in the same time.
Its order also said that the exchange shall carry out System Audit at frequent intervals, after through appraisal of the technological changes introduced from time to time; reconstitute its Standing Committee on Technology at regular intervals to take stock of technological issues, and frame a clear policy on administering whistleblower complaints.The Securities and Exchange Board of India (SEBI) has prohibited leading stock exchange NSE from accessing the securities market directly or indirectly for a period of six months in the co-location case.
The market regulator has also directed NSE to disgorge an amount of Rs 624.89 crores along with interest rate of 12 per cent per annum from April 1, 2014 onwards to the Investor Protection and Education Fund (IPEF) created by SEBI within 45 days.
The regulator has also barred the exchange from the securities market for six months, which means that the NSE cannot access the capital market in terms of IPO for six months.
The SEBI has also found the two former managing directors of NSE guilty in the case. NSE’s former MD and CEO Ravi Narain has been directed to disgorge 25 per cent of his salary drawn for FY 2010-11 to 2012-13 to the IPEF within 45 days. While, former MD Chitra Ramkrishna has also been asked to disgorge 25 per cent of the salary, drawn for the FY 2013-14, to the IPEF in the same time.
Its order also said that the exchange shall carry out System Audit at frequent intervals, after through appraisal of the technological changes introduced from time to time; reconstitute its Standing Committee on Technology at regular intervals to take stock of technological issues, and frame a clear policy on administering whistleblower complaints.