Sebi initiates action against broker in NSE matter: P Radhakrishnan
New Delhi: The Securities and Exchange Board of India (Sebi) has taken action against one broking firm in a case relating to the alleged unfair access to National Stock Exchange (NSE) servers, Parliament was informed Friday.
"Enforcement actions have been initiated by SEBI against one broking firm, inter alia, for consistently logging in first to the servers disseminating tick by tick (TBT) data feed of NSE and consistently logging on to the secondary server and 2 broking firms, inter alia, for consistently logging on to the secondary server," Minister of State for Finance Pon Radhakrishnan said in a written reply to the Lok Sabha.
He also said that administrative warnings have been issued to another six broking firms in this regard.
Further, the NSE has been advised to carry out detailed scrutiny of all such broking firms which had connected to the secondary servers apart from the broking firms already covered by the capital market regulator, he said.
The Sebi had appointed two audit firms -- Deloitte Touche India LLP and Ernst and Young LLP (EY) for carrying out forensic audit of the broking firms which had alleged to have gained preferential access to servers disseminating TBT data feed at the NSE, Radhakrishnan said.
The two audit firms have submitted their reports to the Sebi, he said, adding that the reports have brought out that one of the broking firms was consistently logging in first to the servers disseminating TBT data feed of the NSE, thereby gaining advantage in terms of receipt of TBT data deed.
The reports also observed that few broking firms were found to be consistently logging on to the secondary server without any valid reasons, thereby gaining advantage in terms of receipt of TBT data feed, he added.