Market regulator Securities and Exchange Board of India (SEBI), has barred the National Stock Exchange (NSE), from accessing the securities market for six months and directed the exchange to pay Rs 687 crore in the co-location case.
The SEBI also banned former NSE chief executives Ravi Narain and Chitra Ramakrishna from associating with a listed company or a market infrastructure institution or any other market intermediary for the period of five years. It also directed them to disgorge part of their salaries for the years when NSE had demonstrated favouritism to some brokers above all other brokers.
SEBI had initiated enforcement action after a whistleblower wrote a letter to them alleging that the NSE, had given preferential access to few high-frequency traders and brokers to the exchange’s trading platform.
