NSE co-location case: NSE to pay ₹100 crore in penalties to SEBI for lapses

The National Stock Exchange (NSE) will have to pay 100 crore in penalties to capital markets regulator SEBI for lapses in a case registered in May 2018 related to an alleged co-location trading scam at the bourse, according to reports.

The Securities Appellate Tribunal (SAT) has slashed the disgorgement order of 625 crore in the NSE co-location case. Instead, the NSE was asked to pay 100 crore towards SEBI’s investor protection fund for its failure on the due diligence front.

The order also stated that the stock exchange did not make any illicit gains in the co-location case.

“The direction to disgorge must be in relation to any transaction or activity which is in contravention of the provisions of the SEBI Act or its regulations. The directions to disgorge can be done when its found to be engaged in illegal acts, and not necessarily in every case should a direction to disgorge be passed, because some provisions of the Act have not been adhered to,” SAT held.


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