The tribunal has given Sebi six weeks to respond, following which the appellants will be given three weeks to submit their rejoinders. SAT will next hear the matter on July 22.
In the April 30 order, Sebi alleged that the five appellants while developing the so-called Liquidity Index (LIX) obtained confidential data from NSE which they deployed for preparing an algo trading software and used it for programming trading strategies. Sebi said the confidential data was meant only for developing the Lix index.
Senior counsels Janak Dwarkadas and Shyam Mehta, who represented the appellants, argued before SAT that the “data provided by NSE was only a historical data which had no relevance for future trading.” They also said the data was not confidential as it was already in public domain. The counsels also argued that even though the data was used for developing the algo trading software, no confidentiality clause was violated as the data was in the public domain and accessible to all.
The counsels also argued that if the Sebi order is allowed to stand during the pendency of the appeal, “it will put an irreparable loss and harm to the appellant’s business.”
Earlier, SAT had granted similar interim relief to three senior NSE officials and broker OPG Securities charged in the co-location case.
Meanwhile, Ravi Narain, former managing director, and CEO, NSE too moved SAT against the Sebi order that bars him from associating with any listed company or market intermediary for five years. SAT is likely to hear the matter on May 14.