Is SEBI Burying the NSE Algo Scam; Failing To Go Deep?
Just over a week ago, when the National Stock Exchange (NSE) celebrated 25 years of its existence, Vikram Limaye, the current managing director (MD) and CEO, was confident that the bourse would soon put the algo trading controversy behind it by filing a revised consent application with the Securities and Exchange Board of India (SEBI). 
 
It may be just a happy coincidence, but a flurry of actions happened just before Mr Limaye’s statement. SEBI sent out a fresh set of show-cause notices (SCNs) that appear to have concluded the 2.5-year investigation into what is popularly known as the algo trading scam first exposed by Moneylife. Technically, the consent application can be filed only after an investigation is complete and sources say that Mr Limaye probably had an informal assurance that the Exchange could go ahead and file a consent application. 
 
Soon after, on 13 August 2018, SEBI put out for public comment the report of a high-level committee to review its enforcement and settlement process, which may give it more leeway to tweak the consent rules. 
 
The show-cause notice itself is a massive set of 1,500 pages of documents that seem unable to...
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COMMENTS

Aditya G

1 month ago

I think SEBI has become a joke, and that's a concern, for all of us.

ramchandran vishwanathan

1 month ago

we are replicating US in handling financial frauds where only common man is made to pay for the losses & bears the brunt. All the big fishes end up with alternatives with the booty they make out of looting the loopholes in the system. Acche Din will never come as the Government lacks the intent to crack the whip on defaulters . Only Bhashan no action !!

Ashok Senniappan

1 month ago

In Hindi they say ""-When the Niyath ie intention of top people which is a curse to
our nation to give every possible route to escape where is the question of punishing especially when a famous neta son is also involved.There was a joke in the argument by a advocate who is representing for Masrans who argued that I quote" When a Raksha Mantri can have a exclusive IAF Aircraft ,a Railway Minister can have a Saloon for his travel,Why not a Tececom Minister have a Exclusive Telephone Exchange for 1 line?
For which judge asked if the law permits ,he is certainly eleigible for it.So if if it is not in the law you can have it.

Ashok Senniappan

1 month ago

when S. Gurumrthy is shouting from the roof top to investigate the 7500 private lines
to gather information from National Gate way in respect Marans Telephone line scam the CBI is looking the otherway.When SEBI conducted investigation it called for explanation from 14 persons into the HFT scam with 350 pages of investigation what does this mean? They want to give sufficient time for the pepetreaors of the crime to escape? It shows clearly all the people like,SEBI,NSE,and CBI are on the samed page because they have got their pound of flesh in the the qunatity more than expected.So every one will jointly and severally work for the burrial of the report so the truth will come out.

REPLY

Ashok Senniappan

In Reply to Ashok Senniappan 1 month ago

Corrigandum it is- 350 pages of investigaionreport by SEBI to the culprits to explain.what dose it mean?

Amrish Shah

1 month ago

Every time trading when u but price down & when sell price up.algo trade is computer crime

BV SUDHANVA

1 month ago

nee sattange maadu naa attange maadteene.

tanay

1 month ago

What is a consent order? Does it mean that NSE will just pay a token fine, say sorry and no one will be held responsible?

NSE Algo Scam: “Why Is a Forensic Firm Like E&Y Incapable of Drawing Conclusions from Obvious Findings,” asks SEBI’s Technical Advisory Committee
The technical advisory committee (TAC) of the Securities & Exchange Board of India (SEBI) came down heavily on the attitude of Ernst & Young (E&Y) during a meeting held on 14 June 2018 at New Delhi to discuss the revised E&Y report on the infamous high-frequency trading (HFT) scam, or algo scam, of the National Stock Exchange (NSE). Present at the meeting were Madhabi Puri Buch, whole-time member of SEBI; Manoj Kumar, chief general manager, and three other officers of SEBI. TAC is headed by Prof Dr Ashok Jhunjhunwala.
 
E&Y was appointed to examine in detail the allegations of a whistleblower that, in 2014, some brokers were consistently allowed to log into the co-location servers of the NSE ahead of others, following a breakdown in systems and due processes at India’s largest stock exchange. The E&Y report followed two other investigations: by an expert committee appointed by TAC in late-2015 and one by Deloitte, appointed by the NSE in late-2016. 
 
According to the minutes of the meeting, the TAC chairman reviewed the revised reports submitted by E&Y and observed that E&Y, during its forensic audit, has found “additional evidence in terms of data, email...
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COMMENTS

nadeem

4 weeks ago

Because they don't want to !

svgopal

1 month ago

Its time to develop and encourage Indian Consultancy firms.

REPLY

Ajay Sharma

In Reply to svgopal 1 month ago

Why would they behave any differently??

nadeem

In Reply to Ajay Sharma 4 weeks ago

Agree

SEBI Issues Show Cause Notice for Dark Fibre Access in NSE Algo Scam
Even as the National Stock Exchange (NSE) is trying to go for a consent order in its algo or High Frequency Trading (HFT) or algorithmic (algo) scam to “put the past behind” and launch its initial public offering (IPO), market regulator Securities and Exchange Board of India (SEBI) has issued a second set of show cause notices on 3 July 2018 in its probe into the algo scam. Starting 2010, certain brokers namely Way2Wealth and GKN Securities used NSE’s co-location facility to get early access to its algorithmic trading systems, gaining an unfair advantage until NSE changed its systems in 2014 to prevent misuse.  
 
The second show cause notices (SCNs) alleges that NSE has undergone practices of denial of services to certain stockbrokers resulting in discrimination and non-adherence to principle of fairness and equal opportunity by allowing Way2Wealth (W2W) and GKN Securities to terminate the connections directly in the rack placed inside the Exchange’s co-location facility. This, the SCN says is in complete contradiction to normal practice followed by NSE. 
 
W2W and GKN were allowed to establish P2P connectivity through service provider Sampark, while many...
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Ashok Senniappan

1 month ago

NSE have their logo to "An Stock Exchange for Selective looters with right connections"

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