SEBI Urges NSE To Probe Two Employees In The Co-Location Case And Exonerates Three Other Former NSE Executives

The Securities and Exchange Board of India (SEBI) has disposed of a show cause notice which it had issued to the National Stock Exchange’s (NSE) former employees Subramanian Anand, Ravi Apte, and Umesh Jain on January 4, in the co-location case, without levying any monetary penalty.

According to a recently issued SEBI circular, Mahesh Soparkar and Deviprasad Singh, who are both former heads of product support and management teams, had not discharged their duties as team.

They failed to monitor access to the secondary server by trading members from time to time as well as administering uniform standards of discipline against them, the SEBI circular stated.

The SEBI circular stated that it is up to the NSE to fix accountability on its employees, and take action as it deemed fit and appropriate.

Accordingly, the NSE has been directed to initiate an inquiry under its employee regulations against the two personnel, and submit a report to SEBI within six months.

On April 30, SEBI had passed multiple orders against the NSE and had pulled up some of its current and former employees for lapses at its co-location facility, which allowed preferential access to certain brokers.

SEBI had also given remedial directions to the exchange to improve governance and transparency.