India’s National Stock Exchange sues market regulator to access $817 million corpus

© Reuters. FILE PHOTO: A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) – The National Stock Exchange of India is suing the country’s market regulator to get access to 60 billion rupees ($816.77 million) of its revenue deposited into a separate account for over four years, the Economic Times reported on Friday, citing people with knowledge of the matter.

In September 2016, the Securities and Exchange Board of India (SEBI) had asked the NSE to deposit revenue generated from offering co-location services into a separate account and had barred it from using those funds, the report said.

Brokerages can rent data racks in the exchange itself from co-location frameworks, allowing them quicker access to exchange servers.

In April 2019, SEBI said it did not have enough evidence that the NSE committed a fraudulent and unfair trade practice but it had established the exchange did not exercise due diligence when putting in place the co-location servers.

The stock exchange has moved the Securities Appellate Tribunal to get permission to withdraw money from the account, according to the report.

The NSE also wants the tribunal to pass an order discontinuing the need for the bourse to put its co-location revenues into a different account, the report added. The tribunal is set to hear the matter on May 17.

SEBI and NSE did not immediately respond to Reuters’ requests for comments.

($1 = 73.4600 Indian rupees)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.