NSE Algo Scam: Take Action against NSE Employees and Exchange, recommends TAC
While the National Stock Exchange (NSE) continues to take a hard line against the allegations of manipulation and market abuse in its co-location servers for high-frequency trading (HFT), popularly called the algo scam, the technical advisory committee (TAC), which examined all the evidence on record, is clear that market regulator Securities & Exchange Board of India (SEBI) must take strong action.
 
According to the minutes of the meeting held on 14 June 2018 in New Delhi, the TAC chairman Dr Ashok Jhunjhunwala noted, “that the underlying principle regarding the trading through co-location is the faster access to data (which) gives potential advantage to trading members. Therefore the Committee noted that opportunities to have undue and unfair access by some of the trading members is a gross violation of the basic principle of fair and equitable access irrespective how much profit a firm was able to make. Therefore, SEBI can take suitable and appropriate action to ensure that entities including the exchange are penalised and such events do not require in future.”
 
This strong and clear recommendation of the TAC is important in the light of the consent...
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COMMENTS

Urmila Kumari

1 month ago

I don't think any institution in this country prevent this kind of manipulation because they are not capable

RAMANI N .V.

1 month ago

A Right step long overdue.

Madras HC Issues Notice to SEBI in NSE Algo Scam
The Madras High Court, last week, had issued a notice to market regulator Securities and Exchange Board of India (SEBI) in the matter of suspected multi-crore fraud involving employees of the National Stock Exchange (NSE), says a report.
 
According to a report from Times of India, while admitting a plea filed by advocate A Kumar, the Madras HC directed SEBI to respond to the notice in two weeks. The issue pertains to various offences, including alleged preferential access given by NSE employees to select stock brokers through co-location facility.
 
When the plea came up for hearing, senior counsel for the petitioner P Wilson was quoted by the newspaper as saying, “The wrongful gains by the select brokers by this illegal preferential access through co-location service of NSE cannot be quantified exactly, but is likely to run into several thousand crore per year over five years as NSE trading volume was 2 to 3 lakh crore per day, and co-location accounted for 25% of the total turnover of NSE by 2014.” 
 
This fraudulent practice in the NSE co-location scandal is a mother of all insider trading and is of infinite value which should attract the maximum...
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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?

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