The Securities Appellate Tribunal (SAT) on Wednesday directed the National Stock Exchange (NSE) to transfer Rs 624 crore within two weeks to the market watchdog Securities and Exchange Board of India (SEBI).
The transfer is to be made from its escrow account for colocation service.
The appellate has directed the NSE to place revenues generated out of the colocation and dark fibre case in the escrow account. As per reliable data, this escrow account has a balance of Rs 2,344 crore.
The appellate has directed the NSE to conduct an enquiry on the accused employees in the colocation case. The NSE has been asked to submit the enquiry report within six months.
However, SAT has instructed both NSE and SEBI not to initiate any action against the accused until the case is ruled.
NSE, the biggest stock exchange in India, is not happy with the SEBI’s ruling in the colocation case and has moved the SAT. The appellate has ordered SEBI to write back to the petition within six weeks and NSE can file a reply within three weeks after that.
The NSE told it would stop pursuing IPO for six months and did not have a plan to raise capital for that duration.
The market watchdog has fined NSE a whopping Rs 625 crore with an interest of 12% at the time of payment. SEBI said that NSE had unfairly given advantage to brokers using tick-by-tick data feed.