"Sebi has completed its investigation against NSE and OPG Securities in the co-location matter and has initiated enforcement proceedings against them," Minister of State for Finance Pon Radhakrishnan said in a written reply to the Lok Sabha.
The regulator has examined the alleged role of one of the professor associated with National Institute of Public Finance and Policy (NIPFP) in relation to his association with the NSE and accordingly, enforcement proceedings have been initiated against various entities or persons including the professor, he added.
"Sebi examination, inter alia, observed that the professor had employed a device/scheme/artifice, wherein the confidential and sensitive data provided by NSE was misused in fraudulent manner, which resulted in compromising the integrity of the securities market," the minister said.
"Also, special treatment was given to the professor by NSE to access confidential and sensitive data without formal agreement and data use contract," he added.
Based on the findings of the investigation, Sebi has initiated enforcement proceedings against the NSE, its former and present officials, stock brokers, their employees and other connected entities in the matter, Radhakrishnan said.
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