SAT to take up NSE plea against Sebi order in co-location case on Wednesday

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The National Stock Exchange (NSE) has moved the Securities Appellate Tribunal (SAT) against an order passed by the Securities and Exchange Board of India (Sebi) in the co-location (colo) case. The tribunal will take up the matter on Wednesday, as per the cause list on SAT’s website. Somasekhar Sundaresan will be the counsel for NSE, while Anubhav Ghosh will be the counsel for Sebi.

On April 30, Sebi had passed multiple orders against NSE and some of its current and former employees for lapses at its co-lo facility that allowed preferential access to certain brokers.

In one order, Sebi has directed NSE to disgorge Rs 625 crore along an interest of 12 per cent per annum from April 01, 2014 till the actual date of payment. The regulator has also barred the exchange from raising funds from the market for a period of six months from the date of the order. In another order, Sebi has asked the exchange to deposit Rs 63 crore along with 12 per cent interest from September 11, 2015. In a third order, Sebi has given remedial directions to NSE to improve governance and transparency at the exchange.

Last week, the board of directors of NSE at a meeting deliberated on the Sebi orders. The exchange in a statement had said it has “strong grounds” to contest the Sebi orders including the monetary liability.

SAT has already granted interim reliefs to NSE staffers who had appealed against the Sebi order.

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