Skip to main content

NSE to Seek Sebi Nod to Resolve Co-location Case

By
Exchange MD Limaye also says it’s working on structure to allow GIFT City trading
The National Stock Exchange will soon approach market regulator Sebi to seek resolution of its co-location case through the consent mechanism and is also working on a structure to address its issues with Singapore Exchange, NSE chief executive Vikram Limaye said. “We will talk to Sebi and come out with a resolution on the co-location case and see if we can apply for the consent mechanism,” Limaye told ET on the sidelines of an event to unveil NSE’s new logo on Wednesday. The Central Bureau of Investigation (CBI) had earlier this year registered an FIR against a stock broker who allegedly manipulated NSE’s system from its co-location facility for two years to get first access to markets when they opened. Sebi has in the past returned NSE’s consent application as it had not completed investigation in the case.
The regulator has issued two showcause notices to the exchange and some of its key former and current officials. One of them allege that they gave preferential access to a few highfrequency traders and brokers to its trading platform. The second notice issued last month alleged connivance between NSE officials and brokers who have been accused of misusing the co-location facility.
Limaye also said NSE is in talks with Singapore Exchange (SGX) to resolve a dispute on SGX Nifty. “We are in the process of figuring out a structure, wherein investors can trade in GIFT City (Gujarat International Finance Tec-City) through SGX,” he said. “We need regulatory input for the proposed structure. The new structure will be in the interest of everyone, regulators, participants, SGX and India.” Last month, SGX and NSE in a joint statement said they have deferred the ongoing arbitration proceedings pending outcome of their talks, and that they had resumed discussions on a potential collaboration in GIFT City.
This was after Sebi held talks with its counterpart Monetary Authority of Singapore on July 24 to discuss an amicable resolution of the NSE-SGX tussle among other things. NSE and SGX have been locked in dispute after the Indian exchange announced in February that it would stop licensing its indices to its foreign counterpart from August. NSE’s Nifty futures and options, which are traded in the island nation, are popular with foreign investors who are not keen on trading in India. In response to that, SGX said it would launch successor products to its flagship Indian equity derivative products on June 4. On June 14, arbitrator allowed Singapore Exchange to continue listing and trading of SGX Nifty contracts beyond August.
The Economic Times, 09th August 2018

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Retail inflation cools to a six-year low of 2.82% in May on moderating food prices

By
  New Delhi: Retail inflation in India cooled to its lowest level in over six years in May, helped by a sharp moderation in food prices, according to provisional government data released Thursday.Consumer Price Index (CPI)-based inflation eased to 2.82% year-on-year, down from 3.16% in April and 4.8% in May last year, data from the Ministry of Statistics and Programme Implementation (MoSPI) showed. This marks the fourth consecutive month of sub-4% inflation, the longest such streak in at least five years.The data comes just days after the Reserve Bank of India’s (RBI) Monetary Policy Committee cut the repo rate by 50 basis points to 5.5%, its third straight cut and a cumulative reduction of 100 basis points since the easing cycle began in February. The move signals a possible pivot from inflation control to supporting growth.Food inflation came in at just 0.99% in May, down from 1.78% in April and a sharp decline from 8.69% a year ago.A Mint poll of 15 economists had projected CPI ...
Post a Comment
Read more