On September 13, 2024, SEBI announced the dismissal of regulatory violation charges against the National Stock Exchange (NSE) and seven former employees, including ex-MDs Chitra Ramkrishna and Ravi Narain. The charges were related to the alleged preferential access provided to certain broking firms, including OPG Securities, through the NSE’s co-location facility.

SEBI's 83-page order cited the absence of sufficient evidence to establish collusion or connivance between NSE, OPG Securities, and its directors. The regulator noted that while NSE lacked a detailed policy for the use of the co-location facility and failed to monitor its secondary server, these facts alone did not substantiate the allegations of collusion or connivance. The order emphasized that the absence of evidence violated the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations and SECC Regulations but did not lead to proof of conspiracy or indirect consent.

OPG Securities Penalty

In a separate order, SEBI has directed OPG Securities, along with Sanjay Gupta, Sangeeta Gupta, and Om Prakash Gupta, to disgorge ₹85.25 crore with interest at 12% per annum from May 22, 2015. If they have deposited ₹7.5 crore with SEBI as per the Securities Appellate Tribunal’s directions, the payable amount will be ₹77.75 crore, excluding interest. Additionally, Sanjay Gupta has been banned from participating in the securities market for six months, adding to the previous five-year debarment.

NSE IPO and Future Prospects

The NSE, which has faced delays in its listing due to investigations and regulatory scrutiny, has recently reapplied to SEBI for a "no-objection" certificate (NOC) for its initial public offering (IPO). Upon receiving the NOC, the exchange will draft its prospectus, submit it for SEBI's review, and proceed with the IPO launch. The NSE's public offering has been a long-awaited event, anticipated to bring significant changes and updates to the exchange’s structure and operations.

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