Market regulator Securities Exchange Board of India (SEBI) has dropped proceedings against National Stock Exchange (NSE), Ravi Narayan, Chitra Ramakrishnan, Anand Subramanian and others in the case of NSE’s co-location services. In an order issued on September 13 in this case, SEBI said, “There is no doubt that NSE did not have any pre-defined policy regarding the use of co-location facility.” SEBI said, “It has also failed to monitor the secondary server being used by TMs, although there was no solid reason for this. The argument given by NSE about issuing a welcome email while providing co-location facility to TMs is not correct according to its role as the initial regulator.” Former NSE VC Ravi Narayan and former CEO Chitra Ramakrishnan were accused in the case. The order said, “Issuing guidelines without proper monitoring shows lack of due diligence.” However, the order clarified that these findings do not prove that there was collusion between NSE and its senior management with OPG and its directors. Former NSE VC Ravi Narayan and former CEO Chitra Ramakrishnan were accused in the case. NSE has not issued any direction in co-location case. The case started with SEBI’s order of 30 April 2019
The case started with SEBI’s order of 30 April 2019, which addressed issues related to NSE’s co-location facility. It is a system that allows trading members to co-locate their servers in the exchange’s data center. SAT evaluated several appeals in its January 2023 judgment, including appeals filed by NSE, individuals like Ravi Narayan and Chitra Ramakrishna. The tribunal’s review also included OPG Securities Private Limited and its directors, who had challenged SEBI’s earlier restrictions.
