SEBI bars NSE from accessing the securities market for a period of six months
- Securities and Exchange Board of India (SEBI) has barred National Stock Exchange (NSE) from accessing the securities market directly or indirectly for a period of six months starting from April 30, 2019. It means NSE cannot launch a new derivative product for the next six months.
- This has been done as NSE had not exercised the requisite due diligence while putting in place the TBT architecture. There were some chances of fraud due to server co-location issue.
- Tick-by-Tick (TBT) is a data feed, which provides information regarding every change in the order book on the NSE.
- SEBI has also directed NSE to disgorge an amount of Rs.624.89 crores to the Investor Protection and Education Fund (IPEF) created by SEBI under Section 11 of the SEBI Act.
Points to remember:
- Which trading entity has been banned by SEBI due to co-location?
- IPEF fund full form?
- TBT full form?
- NSE banned for what duration?