NSE submits EY forensic audit report on co-location with Sebi

Press Trust of India  |  Mumbai 

Leading stock exchange today submitted the forensic audit report on the co-location issue, prepared by consultancy EY, to the regulator

Besides, the exchange also submitted a study conducted by the to determine whether certain brokers made any abnormal profits as a result of getting preferential access to the servers of the exchange with the co-location facility.


It can be recalled that earlier, Deloitte, after a forensic audit, had named a few brokers who had profiteered with this facility.

"The today submitted to the Securities and Exchange Board (Sebi) the reports prepared by EY and relating to the co-location matter, that is being reviewed by Sebi," the exchange said in a statement.

The case relates to some brokers allegedly getting preferential access to servers through co-location facility, early login and access to the 'dark fibre'-- which can allow them a split-second faster access to datafeed of the exchange. Even a split-second faster access can yield huge gains for a trader.

While the nation's largest bourse had engaged Deloitte for a forensic audit of its equity derivatives platform, it entrusted EY to carry out a forensic audit into cash markets, currency derivative and interest rate futures platforms.

In July, had approached to settle the case through the consent mechanism. The has not responded to the proposal as yet, though.

The controversy has delayed NSE's IPO plans. Its rival BSE has already gone public in January.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 14 2017. 18:32 IST