SEBI closes co-location case against NSE: Former NSE VC Ravi Narayan and former CEO Chitra Ramakrishnan were also accused in the case

Market regulator Securities Exchange Board of India (SEBI) has ended the proceedings against National Stock Exchange (NSE), Ravi Narayan, Chitra Ramakrishna, Anand Subramanian and others in the case of NSE’s co-location services. In an order issued on September 13 in this case, SEBI said, ‘There is no doubt that NSE did not have any pre-defined policy regarding the use of co-location facility.’

SEBI said, “It also failed to monitor the secondary server being used by TMs, though there was no cogent reason for the same. The argument put forward by NSE for issuing welcome emails to TMs while providing co-location facility is not tenable in its role as the primary regulator.”

Former NSE VC Ravi Narayan and former CEO Chitra Ramakrishnan were accused in the case The order said, ‘Issuing guidelines without proper monitoring shows lack of due diligence.’ However, the order clarified that these findings do not prove that NSE and its senior management were in collusion with OPG and its directors. Former NSE VC Ravi Narayan and former CEO Chitra Ramakrishnan were accused in the case. NSE has not issued any instructions in the co-location case.

The matter was initiated by SEBI’s order dated April 30, 2019 The case stems from a SEBI order dated April 30, 2019, which addressed issues related to NSE’s co-location facility, a system that allows trading members to co-locate their servers at the exchange’s data centre.

The SAT evaluated several appeals in its January 2023 judgment, including those filed by NSE, individuals such as Ravi Narayan and Chitra Ramakrishna. The tribunal’s review also included OPG Securities Private Limited and its directors, who had challenged SEBI’s earlier restrictions.