[ad_1]
The Securities and Exchange Board of India(SEBI) on Wednesday penalised brokering firm Adroit Financial Services and Silver Stream Equities for their alleged involvement in the NSE colocation matter.
Both the brokers have been asked to pay a fine of Rs 600,000 each.
Sebi order says they continuously tried to log into the secondary server of NSE for faster access.
The matter dates back to between 2010 and 2014.
As per the Sebi order, Adroit logged into the backup server of NSE in the currency derivatives segment for 320 trading days during the investigation period. On the other hand, Sebi noted that Silver Stream logged into the secondary server of NSE in futures and options segment for 201 trading days during the period.
They continued to log into to the secondary servers despite a ‘reprimanded’ from NSE
“By circumventing the primary source on a regular basis, the noticee engaged in conduct which undermined the trading system set up to provide fair and equitable access to all brokers who connected to it,” says the Sebi order.
The regulator, however, wasn’t able to establish any unfair gains made by the brokers.
“I note that the material on record does not bring out any gains made or unfair advantage availed or loss caused to investors by the Noticee due to the aforesaid violation,” the order adds.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link