Co-location case: SEBI sends notice to NSE, former top executives

Markets regulator Securities and Exchange Board of India (SEBI) on Wednesday slapped a show-cause notice on the National Stock Exchange (NSE) in the co-location case. Similar notices were also issued to former top NSE executives Ravi Narain and Chitra Ramakrishna along with some brokers. SEBI has given them four weeks' time to reply, before it begins the adjudication process. In the notice, SEBI has alleged violation of the Securities Contracts (Regulation) Act, 1956 and Fraudulent and Unfair Trade Practices regulations. The probe, which began in May 2017, has revealed a breach of systems at the stock exchange and grant of unfair access to select brokers. Statements of 100 individuals were recorded during the probe, according to media reports. Earlier, a Central Bureau of Investigation (CBI) team had visited the NSE to collect documents related to OPG Securities, one the prime accused in the case. Multiple sources had told Moneycontrol that CBI officials had collected crucial documents, including accounting-related documents, on OPG Securities. “They also took statements of related officials who have not been named in the FIR," one of the sources had said.