07:11 AM, 5 May, 2024
Ongoing Legal Cases of NSE ?
Colocation Facility: SEBI found issues with NSE's colocation facility, where certain traders allegedly received preferential access. As a result, SEBI ordered NSE to refund Rs. 624.89 crores plus interest and imposed a six-month ban on accessing the securities market. Appeals reduced the penalty to Rs. 100 crores for negligence, with ongoing appeals at the Supreme Court by SEBI.
Dark Fibre: SEBI imposed a penalty of Rs. 62.58 crores plus interest for providing certain market participants with an unfair advantage through preferential connectivity (dark fibre). However, SAT reversed this order, and SEBI had to refund Rs. 31 crores. The amount of Rs.31 Crores was received by NSE on November 17, 2023.
Governance and Conflict of Interest: SEBI issued non-monetary directives to NSE regarding governance and conflict of interest issues. Appeals against these directives are still pending before the SAT.
Trading System Halt: An issue with telecom links caused a trading system halt, leading to penalties of Rs. 25 lakhs each for NSE and NCL. Settlement agreements have since been reached, with NSE and NCL paying the respective penalties.
Trading Access Point (TAP): SEBI issued a Show Cause Notice (SCN) to NSE for the TAP matter. NSE filed a consent application offering to settle without admitting guilt, and revised settlement terms are pending SEBI approval.
Strategic Advisor Appointment: SEBI found irregularities in the appointment of a Chief Strategic Advisor who shared confidential NSE data with an external party. NSE paid a Rs. 2 crore penalty following SEBI's findings.
07:02 AM, 5 May, 2024
1. The current SGF (Settlement Guarantee Fund) is around ~INR 8800 Cr.
2. This fund is used to ensure the smooth settlement of trades by providing a financial safety net that helps protect against counterparty risks and defaults, ensuring stability and trust in the trading system.
3. This fund should be around INR 10K cr as per SEBI. This year in Fy24, 1740 Cr has been set aside from the P&L due to which less growth in PAT and EPS.