|
|
|
|
SEBI penalises 2 brokerages in NSE Co-Location case
|
|
|
|
| Top Stories |
 |
|
|
|
SME Times News Bureau | 16 Apr, 2021
Capital market regulator SEBI has fined brokerage firms, PRB Securities
Private Ltd and CPR Capital Services, in the NSE Co-Location matter for
violation of norms.
The regulator has imposed a total fine of Rs 6 lakh on PRB Securities and Rs 12 lakh on CPR Capital Services.
The
SEBI said that it had received multiple complaints pertaining to
allegations of malpractices with respect to the co-location facility
being provided by the National Stock Exchange of India Ltd (NSE).
In
the wake of allegations of preferential access to Tick-byTick (TBT)
data feed given by the NSE to certain trading members (TMs), the matter
was taken up for investigation by the SEBI.
PRB Securities was
one of the trading members identified for comprehensive investigation,
including forensic audit for primary and secondary server connects.
In
the case of PRB Securities, the regulator said that the brokerage was
connected to the secondary server for 215 days in the cash market
segment during the investigation period and the secondary server
connections in the F&O and currency derivatives segments are only
on 45 days and 6 days, respectively, during the investigation period.
"I
also note that the Noticee was not reprimanded by NSE for the
violations, unlike some other brokers who had more frequent secondary
server connections," said Adjudicating Officer, Prasanta Mahapatra in
the order copy.
"However, it is established that the Noticee has
failed to comply with aforesaid guidelines and hence violated the
aforesaid provisions of Code of Conduct specified under Stock Broker
Regulations, 1992 and PFUTP Regulations, 2003," the order said.
Regarding
CPR Capital, a separate order copy said that the noticee connected to
the secondary server in the cash market (CM), futures and options
(F&O) and currency derivative (CD) segments during the relevant
period even after reprimand from the NSE and also failed to provide
complete information during the investigation.
The SEBI noted
that CPR Capital has failed to comply with the guidelines, also failed
to provide complete information during investigation and hence, violated
SEBI regulations.
Both the brokerages have been directed to pay the penalty within 45 days of receipt of the order.
In
February, SEBI had imposed an overall penalty of over Rs 5 crore on
brokerage firm OPG Securities Private Ltd, along with its promoter and
MD Sanjay Gupta, and two other Directors in the matter.
OPG
Securities used the NSE system to its advantage by hiring Nagbhusan
Bhat, who was working with Omnesys Technologies, to figure out which
server was working better.
The brokerage also allegedly made
certain arrangements with NSE datacentre staffer named Jagdish Joshi who
would inform it of the time when the servers would start, and
therefore, they could be the first to connect.
The co-location
case which dates back to 2015 sparked controversy when a whistleblower
wrote to the SEBI alleging the NSE was giving a few high-frequency
brokers preferential access to its servers by allowing them to place
their servers in the NSE premises that benefited both the parties at the
cost of others.
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Customs Exchange Rates |
| Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
| Japanese
Yen |
55.05 |
53.40 |
| As on 12 Oct, 2024 |
|
|
| Daily Poll |
 |
 |
| Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
| Commented Stories |
|
|
|
|
|
|
| |
|
