Regulations
Algo trading allegation: NSE appoints Deloitte to conduct forensic audit, says report
The National Stock Exchange (NSE) has appointed Deloitte India to conduct a forensic audit of its algo trading system and examine allegations of unfair access to some brokers in algorithmic trading, says a report.
 
Quoting a spokesperson of NSE, a report from Live Mint  says, “Deloitte has been appointed, NSE will adhere to Securities and Exchange Board of India (SEBI) directions”. 
 
This appointment by NSE follows an order from the market regulator to NSE Chairman Ashok Chawla. The letter sent by SEBI on 9 September 2016, asked NSE to "immediately initiate an independent examination (including forensic investigation by an external agency) of all the concerns highlighted by the SEBI expert committee in its report alleging lack of process that allowed this to happen and collusion if any and fix accountability for the aforesaid breaches covering NSE and stock brokers, vendors and outsourced entities involved in the issue.” (Read: SEBI Finally Cracks down on NSE’s Suspect Algo Trading. What does it mean? )
 
Apart from a forensic investigation, the most significant punitive aspect of SEBI’s directive is that all revenue accruing from its co-location facilities, including from fibre connectivity between brokers’ co-location facilities and their offices, must be paid into an escrow account. The NSE has been asked to get all concerns expressed by the committee addressed, and take necessary action, within three months. 
 
According to the newspaper report, the forensic audit by Deloitte would cover NSE's co-location facility, algorithmic trading platform, brokers and vendors who access or are connected with NSE’s co-location facility. It will also examine allegations of collusion between NSE officials, vendors and brokers and gather evidence if any violations are found, two of the people told Live Mint.
 
“Based on the forensic audit NSE would examine its systems, take corrective action and submit its final report to SEBI,” the report said quoting a person familiar with the development who spoke with Live Mint on condition of anonymity. 
 
As per the report, the forensic audit would examine if certain brokers got unfair access or were able to manipulate NSE’s existing system to get preferential access. Quoting a person familiar with the development, the report says, “As part of the forensic audit or fact-finding exercise, Deloitte would be examining the trade data, time stamps and verifying it against the broker code to gauge whether certain brokers got unfair preferential access”.
 
In April 2016, a Bloomberg report said that the NSE planned to challenge SEBI’s findings and insisted that there was no wrongdoing at all. The report also quoted anonymous sources connected with the NSE on its stand that the committee had, “simply repeated allegations made by an unidentified whistle-blower without doing a thorough investigation.” This time, however, the NSE appears to follow SEBI’s directive by appointing Deloitte for forensic audit.
 

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New metro lines for Mumbai and Thane
Two new metro lines, including one exclusively for Thane on the mainland, will be constructed at a total cost of Rs15,000 crore, Chief Minister Devendra Fadnavis announced here on Wednesday.
 
The lines are the 24-km long Metro 5 corridor linking Thane-Bhiwandi-Kalyan in adjoining Thane district and the 14.5-km long Metro 6 corridor connecting Lokhandwala-Jogeshwari-Vikhroli-Kanjurmarg in the Mumbai suburbs.
 
Metro 5 with 17 stations will be built at a cost of Rs8.416 crore and Metro 6 with 13 stations will cost Rs6672 crore. Both are expected to be completed within the next four years, Fadnavis said.
 
The decision was taken at a meeting of Mumbai Metropolitan Region Development Authority (MMRDA) presided over by the Chief Minister.
 
Besides the two new metro corridors, the MMRDA also approved a Rs194 crore project to set up 500 WiFi hotspots in Mumbai.
 
The Maharashtra Information & Technology Corporation will carry out the on-ground work to identify the 500 hotspots in the first phase under the aegis of Directorate of Information and Technology.
 
Fadnavis also launched the new, two-colour MMRDA logo for Mumbai Metro corridors, specially designed by students of Sir J. J. College of Arts.
 
This is the second major metro lines project announced by the state government in barely three weeks.
 
On September 27, the government approved two new metro corridors - Metro 2B and Metro 4 - with an investment of Rs 25,525 crore.
 
Metro 2B will be 23.5 kms long linking DN Nagar-Bandra-Mankhurd and Metro 4 will connect Wadala-Ghatkopar-Thane-Kasarvadavali, both likely to be operational by 2021-2022.
 
Presently, Mumbai is served by the 11.4-km long Metro linking Versova-Andheri-Ghatkopar since June 2014.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Samsung to face class action lawsuits in S. Korea, US
The problems of Samsung Electronics are far from over as disgruntled customers plan to file class action lawsuits in South Korea and the US over the company's exploding Galaxy Note 7 smartphones, media reports said on Wednesday.
 
While three US customers from three different states -- Nevada, Pennsylvania and California -- have already complained about the fire-prone devices, 38 owners of the Galaxy Note 7 smartphone in South Korea plan to file a class action lawsuit against Samsung for alleged inconvenience experienced after the discontinuation of the device.
 
Each person in the South Korean suit, which is scheduled to be filed with the Seoul Central District Court next Monday, is seeking 300,000 won ($267) in damages, Harvest Law Office said on Wednesday.
 
The proposed suit alleges that owners of the Note 7 were forced to visit stores several times for battery checks or to get replacements, Yonhap news agency reported.
 
The complaint also states that the consumers experienced anxiety over safety while using the Note 7.
 
Koh Young-il, an attorney at the law firm, said he expects the firm to win the suit, given precedents for faulty products.
 
Last week, Samsung permanently halted sales and production of the fire-prone Note 7, about two months after the device's launch.
 
The suit filed on Friday in the US District Court in Newark, New Jersey, and made public on Tuesday, accuses Samsung Electronics America of fraud and breach of warranty and good faith, NBC News reported.
 
The suit -- whose class action status must still be approved by a judge before it can proceed -- seeks unspecified damages over what it alleges was Samsung's mistreatment of its customers because they had to keep paying on their contracts during the weeks after Samsung recalled the phones but before replacements were made widely available.
 
The South Korean conglomerate began selling the phone on August 19 this year, but in September announced an unprecedented withdrawal following reports of more than thirty cases of combustion by terminals in multiple countries.
 
In the recall affecting about 2.5 million phones, the company proceeded in mid-September to deliver replacement phones, but the new batch continued to suffer from battery overheating, ultimately resulting in the definitive withdrawal of the product. 
 
The South Korean tech giant last week estimated that it will lose $3 billion in operating profits over the next six months due to the withdrawal of the Galaxy Note 7 smartphone.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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