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...