NEW DELHI: Capital markets regulator Sebi has served a show-cause notice on NSE in the co-location case, ETNOW reported on Wednesday.
The regulator had begun probe into the matter in May 2017.Investigations have revealed a breach of systems at NSE and grant of unfair access to select brokers.
The Sebi notice alleged a violation of Securities Contract Regulation Act (SCRA) and Fraudulent and Unfair Trade Practices (FUTP).
Statements of 100 individuals were recorded as part of the probe.
Similar show-cause notices were also issued against a few former senior NSE employees.
On June 21, Sebi had initiated enforcement actions against various entities in the case.The watchdog has been probing alleged lapses in high-frequency trading offered through NSE's co-location facility.We have received the investigation report in the co-location case and have initiated enforcement actions," Sebi Chairman Ajay Tyagi had said after a board meeting last month.The regulator was probing allegations that some brokers had unfair access to NSE's high-frequency trading systems.In March, Sebi had returned NSEs consent application in the case due to the ongoing investigation.The exchange's Rs 100 billion IPO has been delayed because of the probe.
Earlier, Sebi had issued show-cause notices to several individuals and the exchange and probed the role of some brokers.