NEW DELHI: The Securities Appellate Tribunal (SAT) on Thursday set aside Sebi's order imposing a fine of Rs 7 million on NSE in dark fiber case. Furthermore, the court quashed a fine of Rs 5 million levied by Sebi on former exchange official Anand Subramanian. It also partially set aside the regulator's order against former NSE director and CEO Chitra Ramkrishna, former employee Ravi Varanasi and some stockbrokers.
The SAT ruling order came after 16 appeals were filed against a Sebi order passed in June 2022 against 18 entities, including NSE, its former employees and stockbrokers.
A dark fiber or unlit fiber refers to an unused optical fiber, which is not connected to active equipment/electronics and has no other data flowing through it and is available for use in fiber optic communication. The case concerns the alleged differential access granted to certain brokerage firms in the form of 'dark fiber' on the NSE to connect through the co-location facilities before other members.
Sebi imposed penalties of different amounts against each appellant for violation of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations as well as Sebi circulars. In addition, fines were imposed for violating the Securities Contracts (Regulation) Act, 1956 (SCRA).
The regulator has initiated an investigation into the trading of various entities, for the period 2009 to 2016, to investigate the issue of provision of connectivity to certain stockbrokers by the NSE in a manner that may be detrimental to investors or the securities market. mobile values.
The court observed that the order of the AO (adjudicating officer) contained nine charges against NSE, out of which seven charges were the same as those leveled by the entire time member. It stated that seven charges against the exchange were quashed by this court in its order dated August 9, 2023.



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