SEBI slaps a heavy fine on Chitra Ramakrishna & Anand!
Capital market regulator Sebi has taken a sensational decision. A fine of Rs 7 crore has been imposed on the National Stock Exchange in the 'dark fiber' case. This is known as the NSE co-location case.
Some stockbrokers are accused of taking advantage of preferential access to the exchange system. The investigation focused on the role of stock brokers in this case. In addition to NSE, the capital market regulator Stock Exchange has fined former MD Chitra ramakrishna and group operating officer anand Subramanian Rs 5 crore each.
It appears from the latest SEBI order that a penalty of Rs.3 crore has been imposed on internet service provider Sampark Infotainment and Rs.6 crore on stockbroker Way2Wealth Brokers. Employees of W2W, GKN firms colluded with employees of NSE, Samparks to take advantage of the millisecond latency of their servers. SEBI's investigation has revealed that they have made substantial profits illegally. According to the investigation in this matter, it was alleged that some stock brokers had installed cabling at Sampark co-location in such a way that there was less latency as compared to other trading members connected with Sampark. In its order, SEBI said that the penalties shall be paid through demand draft within 45 days of receipt of the order.