SEBI Closes NSE Co-Location Case, No Collusion Found

SEBI has closed proceedings against NSE and its former executives regarding the co-location case, citing insufficient evidence. The order reinforces SAT's earlier findings, dismissing allegations of collusion. This decision may pave the way for NSE's pending IPO.

The Securities and Exchange Board of India (SEBI) has concluded its proceedings against the National Stock Exchange (NSE) and its former key executives in the co-location case, citing a lack of substantial evidence. In an order released on September 13, SEBI confirmed that NSE's inadequate monitoring and policy lapses did not amount to collusion.

The market regulator emphasized that while NSE's issuance of 'registration enablement mail' failed to justify its regulatory role, and the guidelines lacked proper oversight, there was insufficient material or objective facts to establish any collusion between OPG Securities Private Limited and NSE's senior management.

SEBI's closure of the case aligns with the Securities Appellate Tribunal's (SAT) findings from January 2023, which set aside an earlier SEBI order due to a lack of evidence of systemic malpractice. The conclusion of this case may also facilitate the pending IPO of NSE, stalled due to this co-location controversy.

(With inputs from agencies.)