Markets regulator fines two trading members in NSE co-location case

By Press Trust Of India28 days ago

Markets regulator Sebi on Friday slapped fines totalling Rs 18 lakh on CPR Capital Services Ltd and PRB Securities Pvt Ltd for various violations with respect to using National Stock Exchange's co-location facility.

There were allegations of preferential access to Tick-By-Tick (TBT) data feed being given by the exchange to certain trading members, following which Sebi probed the matter. The two entities were among the trading members that were identified for comprehensive investigation for primary and secondary server connects.

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Fines of Rs 12 lakh and Rs 6 lakh have been imposed on CPR Capital Services and PRB Securities, respectively, Sebi said in two separate but similarly-worded orders on Friday.

A comprehensive investigation, including a forensic audit, of the two entities were carried out and reports submitted to the regulator in 2019. Ernst & Young LLP had done the probe of CPR Capital Services and that of PRB Securities was carried out by Deloitte Touche Tohmatsu India LLP.

The investigation period varied from June 2010 to November 2014, depending on the segments. It was June 2010 to April 2014 for Futures and Options (F&O), October 2010 to November 2014 for Cash Market (CM) and January 2012 to April 2014 for Currency Derivatives (CD).

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