NSE Pays Hefty Sum to Settle Sebi Violations Case
The National Stock Exchange (NSE) paid Rs 40.35 crore to Sebi to settle several compliance violations, including improper data handling and governance issues. The settlement resolved multiple charges, including unauthorized data outsourcing and insider trading concerns. NSE has also filed settlement applications for other related cases, awaiting Sebi's response.
- Country:
- India
The National Stock Exchange (NSE) has paid a significant settlement of Rs 40.35 crore to the Securities and Exchange Board of India (Sebi) to resolve issues surrounding data handling and governance violations. The violations included unauthorized outsourcing of trade data without legal agreements, exposing sensitive information to potential breaches.
NSE's system architecture allowed potential insider trading risks by disseminating unpublished price-sensitive information. Other lapses involved unapproved penalty waivers and inadequate reviews of trading errors, which led to Sebi's scrutiny. Despite NSE undertaking an internal review to find responsible officers, no individuals were identified, attributing the errors to the organizational level.
The resolution includes compliance with non-monetary conditions and the regulator retaining the right to reopen the case if settlement terms are violated. Meanwhile, NSE awaits Sebi's response on additional settlement applications connected to previous probes.
(With inputs from agencies.)
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