Left Menu
Development News Edition

NSE colocation case: Sebi exonerates Ravi Narain, 8 others

PTI | New Delhi | Updated: 16-01-2020 18:49 IST | Created: 16-01-2020 18:47 IST
NSE colocation case: Sebi exonerates Ravi Narain, 8 others
File photo Image Credit: ANI

In the high profile NSE co-location case, regulator Sebi on Thursday exonerated nine current and former officials of the exchange, including ex-MD and CEO Ravi Narain, saying they cannot be held responsible for any misconduct or non-compliance in the so-called 'dark-fiber issue'. The former officials who have been absolved from the charges are the exchange's senior VP (operations) R Nandakumar, Colo head Jagdish Joshi, chief technology officers (CTOs) N Muralidharan and Ravi Apte.

The current officials of the exchange, who have been exonerated are its chief operating officer (Trading) Mayur Sindhwad, CTO-Projects Sankarson Banerjee, CTO-Operations G Shenoy, and VP-Regulations Suprabhat Lala. The order came after an investigation by the Securities and Exchange Board of India (Sebi) against several former and current NSE employees and stockbrokers in the co-location matter.

It was alleged that certain stockbrokers were permitted to avail of Point-to-Point (P2P) dark fiber connectivity from Sampark Infotainment Pvt Ltd, a non-impaneled service provider, and the connectivity provided by this company conferred a latency advantage to a few brokers which resulted in a substantial increase in their turnover during the period from April-August, 2015. While granting permission to stockbrokers for establishing P2P connectivity from its Colo facility with the help of Sampark, NSE has been alleged to adopt a discriminatory approach towards a large number of other stockbrokers, by allowing Sampark's services to be availed by only a few selected stock brokers.

It has been alleged that NSE has not acted in a fair and equitable manner while dealing with its members and these nine officials were allegedly employed at top positions of the exchange during the period. Sebi, in its order, said that none of the nine officials was occupying a post of director and/or key managerial position at the exchange during the relevant period -- April- July 2015.

"Further, the materials available on record also don't indicate even remotely, the role of any of the noticees as an employee of NSEIL (National Stock Exchange of India Ltd) in facilitating Sampark to establish the P2P connectivity at NSEIL," it added. With regard to the allegations pertaining to the amendment made in the circular of 2009 in an opaque manner and allowing Sampark to continue to provide the services, in spite of fact that it did not possess the requisite department of telecom license to provide the desired telecom services, Sebi said it did not find any evidence worthwhile to proceed against these officials.

"It can't be held that the notice herein was involved in facilitating "Sampark" to lay down the Dark fiber line to provide P2P connectivity. There is also no evidence to suggest that notice had any role in modifying the circular of 2009 in the year 2013. Consequently, they were also not responsible for the non-transparent dissemination of the modification so made in the above-mentioned circular of 2009 and therefore, the noticees cannot be held responsible for any misconduct or non-compliance as far as laying of P2P connectivity using dark fiber is concerned," Sebi said. Consequently, Sebi has disposed of the instant proceedings initiated against these officials by exonerating them from the allegations charged against them.



New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...


Latest News

What action will Cong take against Nath on his remark? Chouhan

Madhya Pradesh Chief Minister Shivraj Singh Chouhan on Tuesday asked the Congress leadership what action they will take against senior party leader Kamal Nath for his item jibe against state minister Imarti Devi. After facing flak over his ...

Nath expresses regret over jibe at MP minister but says won't apologise

Facing flak for his item jibe about Madhya Pradesh minister Imarti Devi, state Congress chief Kamal Nath has expressed regret and claimed that he did not say anything disrespectful. While Congress leader Rahul Gandhi said earlier in the day...

Trump calls Fauci a 'disaster' and seeks to reassure his team he can win

President Donald Trump called coronavirus expert Anthony Fauci a disaster on Monday, airing his frustration with the scientist during a call meant to reassure campaign staff he has a path to election victory on Nov. 3, despite trailing in o...

Number of seats in MBBS course increased to 4,000 in West Bengal: Mamata

West Bengal Chief Minister Mamata Banerjee on Tuesday said the number of seats in the MBBS course has increased to 4,000 in the state with the addition of 250 seats in two medical colleges. Banerjee had earlier underscored the need for incr...

Give Feedback