The Securities Appellate Tribunal (SAT) has rejected a plea by the National Stock Exchange (NSE) for allowing it to give a bank guarantee instead of transferring Rs 687 crore to Securities and Exchange Board of India (SEBI) in the co-location case.
However, SAT granted an additional week to the NSE to comply with the May 22 order which directed the exchange to transfer the money to SEBI’s escrow account within two weeks.
“In our view, we do not find any reason to modify our order dated May 22. The appellant (NSE) should transfer the amount which is already kept in the escrow account as per the interim order of SEBI,” SAT said.
The regulator had earlier asked the NSE to deposit revenue from its co-location facility in an escrow amount as an interim measure.
Later, in its final order in May, SEBI directed the NSE to transfer the amount to the regulator’s escrow account.
In May, the NSE moved the tribunal challenging SEBI’s rulings against it in the co-location case.
The regulator had barred the exchange from accessing the securities the market for six months in the co-location case.