OPG Securities moves to Delhi High Court
MUMBAI: OPG Securities, a Delhi based brokerage that has been investigated for unfair access to NSE servers has pleaded the Delhi High Court to direct the National Stock Exchange to provide copies of certain documents.
It was alleged that OPG Securities has gained unfair access to NSE’s algorithmic trading platform. A forensic audit report by Deloitte, also named the Delhi based brokerage to have benefitted from favoured access, allowing it execute trades ahead of other trading members.
A show-cause notice was issued to OPG Securities on February 14, 2017 by the NSE’s Disciplinary Action Committee seeking explanation why the brokerage had logged on to the secondary server (backup server) despite exchange’s warning.
While denying of receiving any such warnings, OPG through its counsel Amrita Panda has pleaded to the court to direct the NSE to provide copies of the warning letters and the Deloitte report.
Following complaints, a Sebi-appointed committee had initiated an examination and found instances of breach of fair access norms by the exchange. Consequently, market regulator Sebi asked the exchange to conduct an independent forensic examination by an external agency into its co-location facilities and also directed NSE to deposit the revenue generated from co-location in a separate bank account.
The next hearing on this matter is scheduled on March 30.
It was alleged that OPG Securities has gained unfair access to NSE’s algorithmic trading platform. A forensic audit report by Deloitte, also named the Delhi based brokerage to have benefitted from favoured access, allowing it execute trades ahead of other trading members.
A show-cause notice was issued to OPG Securities on February 14, 2017 by the NSE’s Disciplinary Action Committee seeking explanation why the brokerage had logged on to the secondary server (backup server) despite exchange’s warning.
While denying of receiving any such warnings, OPG through its counsel Amrita Panda has pleaded to the court to direct the NSE to provide copies of the warning letters and the Deloitte report.
Following complaints, a Sebi-appointed committee had initiated an examination and found instances of breach of fair access norms by the exchange. Consequently, market regulator Sebi asked the exchange to conduct an independent forensic examination by an external agency into its co-location facilities and also directed NSE to deposit the revenue generated from co-location in a separate bank account.
The next hearing on this matter is scheduled on March 30.
