NSE claims adverse Sebi order will not hit its functioning as exchange

New Delhi: A day after Sebi passed orders against it in the co-location case, National Stock Exchange said Wednesday the orders do not affect its functioning as a recognised stock exchange. "Normal trading on NSE in all segments will continue from Thursday, May 2, 2019. Wednesday, May 1, 2019 is a trading holiday on account of May Day," the bourse said in a statement.

The markets regulator on Tuesday directed the bourse to disgorge profits worth over Rs 687 crore along with interest besides barring it from launching any new derivative products as well as from accessing the securities market directly or indirectly for six months. Together with interest, the total disgorgement amount would be more than Rs 1,000 crore.

Sebi's orders would not affect its functioning as a recognised stock exchange, the statement added. The watchdog passed five separate orders, together running into 400 pages, related to the co-location case, wherein some entities allegedly got preferential access in high frequency trading.

Strict action has also been taken against some present and past executives of the exchange and some stock brokers.

On Wednesday, NSE chief Vikram Limaye said there is "light at the end of the tunnel" after the Sebi orders in co-location case and all legal options will be explored before deciding the future course of action. Limaye also asserted that there would be no bearing on the functioning of the NSE.

"When you look at the orders, you see that there is no evidence of any unfair trade practice or fraudulent trade practice... We are not being charged of any unfair or fraudulent practices," he said. Limaye, who is MD & CEO, said there is nothing pending from the regulatory perspective in the co-location matter.