NEW DELHI: The Securities Appellate Tribunal (SAT) on Thursday quashed Sebi’s order imposing a fine of Rs 7 crore on NSE in the dark-fibre case. Additionally, the tribunal has set aside a fine of Rs 5 crore levied by Sebi on the exchange’s former official Anand Subramanian. Further, it has partly set aside the regulator’s order against former MD and CEO of NSE Chitra Ramkrishna, ex-official Ravi Varanasi and a few stock brokers.
The SAT ruling order came after the 16 appeals were filed against a Sebi’s order passed in June 2022 against 18 entities, including NSE, its former officials and stock brokers.The order was challenged by the appellants on different grounds.
A dark fibre or unlit fibre refers to an unused optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication. The case relates to the alleged differential access given to certain broking firms in the form of ‘dark fibre’ at NSE to connect across the co-location facilities before other members.
Sebi imposed penalties of different amounts against each appellant for violation of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations as well as Sebi’s circulars. Further, fines were slapped for flouting the Securities Contracts (Regulation) Act, 1956 (SCRA).
The regulator had initiated an investigation into the dealings of several entities, for the period 2009 to 2016 to investigate the matter of providing connectivity to certain stock brokers by NSE in a manner which may be detrimental to the investors or the securities market.
The tribunal noted that the order of the AO (adjudicating officer) contained nine charges against the NSE, out of which seven charges were the same as given by the whole time member. It said seven charges against the exchange were set aside by this tribunal in its order of August 9, 2023.
The SAT ruling order came after the 16 appeals were filed against a Sebi’s order passed in June 2022 against 18 entities, including NSE, its former officials and stock brokers.The order was challenged by the appellants on different grounds.
A dark fibre or unlit fibre refers to an unused optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication. The case relates to the alleged differential access given to certain broking firms in the form of ‘dark fibre’ at NSE to connect across the co-location facilities before other members.
Sebi imposed penalties of different amounts against each appellant for violation of the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations as well as Sebi’s circulars. Further, fines were slapped for flouting the Securities Contracts (Regulation) Act, 1956 (SCRA).
The regulator had initiated an investigation into the dealings of several entities, for the period 2009 to 2016 to investigate the matter of providing connectivity to certain stock brokers by NSE in a manner which may be detrimental to the investors or the securities market.
The tribunal noted that the order of the AO (adjudicating officer) contained nine charges against the NSE, out of which seven charges were the same as given by the whole time member. It said seven charges against the exchange were set aside by this tribunal in its order of August 9, 2023.