The Securities and Appellate Tribunal (SAT) on Wednesday stayed SEBI’s order asking the National Stock Exchange to disgorge ₹624 crore in the co-location case and ₹62 crore in the dark fibre matter.

SAT asked NSE to deposit this amount in a separate, interest-bearing account with SEBI by the next hearing on July 22. SAT has given SEBI six weeks to reply in the co-location matter on contentions raised by various entities against its order. The NSE too has been given three weeks to file a rejoinder. SAT also asked the NSE to initiate an enquiry against the employee accused in the co-location case and submit a report within six months.

SEBI said there was no fraud in the co-location matter at the NSE and only a procedural lapse, but had charged the exchange with prevention of fraudulent and unfair trade practices in the dark fibre matter. NSE was asked to disgorge ₹624 crore with 12 per cent interest at the time of payment. SEBI had said that NSE gave an unfair advantage to brokers who used the tick-by-tick data feed.

Prior to the NSE, 12 entities have managed to get an interim stay from SAT against SEBI strictures. The NSE already has been maintaining a balance of around ₹2,344 crore in an escrow account as per SEBI orders. The amount as per SAT will now be deducted from this, and the money will go into another escrow account, sources said.

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