Co-location case: SAT rejects OPG Securities plea regarding payment of fine

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The Securities Appellate Tribunal has rejected OPG Securities' plea in the co-location matter, wherein the stock broker had sought permission to deposit Rs 7.5 crore as a mix of cash and securities with the regulator.

Previously, the tribunal had granted interim stay on Securities and Exchange Board of India's (Sebi) order against OPG Securities and its directors, but had asked them to deposit Rs 7.5 crore with Sebi by May 20.

Last month, Sebi barred OPG Securities and its three directors from markets for five years and asked them to disgorge illegal gains worth Rs 15.57 crore along with interest for gaining unfair advantage over other trading members by connecting to secondary server in NSE's co-location facility on a daily basis without valid reasons.

While rejecting the plea, the tribunal, in an order dated May 20, said "it does not find any merit" in the application.

It asked OPG "to deposit a sum of Rs 7.5 crore in cash or in the form of a bank guarantee given from a nationalised bank to be deposited before the respondent on or before May 30, 2019 failing which the interim order shall stand vacated automatically."

The Sebi is the respondent in the case as per the order.