NSE sets aside over Rs 4,000 cr from co-location facility

The National Stock Exchange (NSE) has set aside more than Rs 4,0000000000 of revenues generated from its co-location facility till June-end, pursuant to a directive from markets regulator Sebi The Securities and Exchange Board of India (Sebi) had directed the NSE to carry out an investigation, including forensic examination by independent external agencies, in respect of certain aspects of the exchange's co-location facility.The exchange got the investigation carried out and submitted the reports to Sebi.Further, Sebi had directed that pending completion of the investigations, all revenues emanating from the co-location facility with effect from September 2016 be transferred to a separate bank account."Accordingly, as on June 30, 2020, an amount of Rs 4,066.780000000 (Rs 3,606.730000000 as of March 31, 2020) was transferred to a separate bank account and then has been invested in accordance with the board of directors-approved investment policy and procedures," the NSE said while disclosing its financial results on August 7.The exchange said, "It has strong grounds to contest the above orders including monetary liability (including from pending adjudication proceedings) raised by Sebi."Accordingly, no provision for any liability in this regard is considered necessary in the financial results as of and for the quarter ended June 30, 2020, the exchange noted.The orders are pertaining to the NSE's co-location facility, dark fibre point-to-point connectivity and governance and related matters.With regard to its financial earnings, the exchange said its profit after tax ( PAT ) increased to Rs 706.340000000 in three months ended June 30, 2020, from Rs 4260000000 in the corresponding quarter of the previous financial year.Besides, total income rose to Rs 1,257.390000000 in April-June 2020, from Rs 939.250000000 in the June quarter of 2019-20.