EY was appointed by the NSE early this year to audit its cash, currency derivatives and interest rate futures markets, to ascertain if these segments were also prone to manipulation like the equity derivatives segment. The ISB study was to determine whether any abnormal profits were made as a result of first log-in to servers by members named in the Deloitte report, the exchange said. The NSE has refused to comment on the findings of the report.
Sources say the findings of the latest audit reports will help Sebi decide on the NSE’s consent plea to settle the co-location matter.
Soon after Deloitte submitted its report, the regulator had called for another audit of the cash and currency segments. Based on Deloitte and Sebi’s internal findings, Sebi had served show-cause notices to the NSE and 14 of its current and former key management personnel for alleged irregularities at the co-location facility.
Sebi has also ordered another forensic audit to establish any collusion between brokers and officials of the NSE.