Employees walk through the atrium of the National Stock Exchange of India Ltd. (NSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

NSE Co-Location Probe In Advanced Stage, Says SEBI

Markets regulator SEBI today said the probe into alleged lapses in high-frequency trading offered through NSE’s co-location facility is in advanced stage.

The regulator is probing allegations related to unfair access to NSE’s high frequency trading systems to some brokers.

The exchange’s Rs 10,000 crore IPO has been delayed because of the probe, and the regulator had earlier issued show cause notices to several individuals and the exchange while also probing the role of some brokers.

When asked about NSE’s co-location issue, SEBI Chairman Ajay Tyagi said, “we are in the advanced stage of investigation”.

Earlier this month, the National Stock Exchange said SEBI had returned its consent application in the case due to the ongoing investigation. According to regulatory sources, SEBI returned the plea as the probe is at a critical stage with regard to brokers and former senior executives of the exchange.

The exchange had filed a settlement application – that allows entities to settle charges by paying a penalty without admission or denial of guilt – with the Securities and Exchange Board of India in July last year. However, the exchange had said it is hopeful to float initial public offer in the next financial year.