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India's National Stock Exchange moves court to access $817 million corpus

Published 05/14/2021, 01:37 AM
Updated 05/14/2021, 05:55 AM
© Reuters. FILE PHOTO: A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

BENGALURU (Reuters) -The National Stock Exchange of India said on Friday that it has moved the Securities Appellate Tribunal to get access to 60 billion rupees ($816.77 million) of its revenue deposited into a separate account for more than four years.

Apart from seeking permit to withdraw money from the account, the stock exchange said in a statement that it has requested the tribunal to allow discontinuation of transfer of revenue generated from its co-location facility to the account.

The tribunal is scheduled to hear the matter on May 17.

In September 2016, the Securities and Exchange Board of India (SEBI) had asked the NSE to deposit revenue generated from offering co-location services into a separate account and had barred it from using those funds, according to an Economic Times https://economictimes.indiatimes.com/markets/stocks/news/nse-approaches-sat-to-access-over-6000-cr/articleshow/82619623.cms report earlier in the day.

Brokerages can rent data racks in the exchange itself from co-location frameworks, allowing them quicker access to exchange servers.

In April 2019, SEBI said https://www.reuters.com/article/india-sebi-nse-idUSL3N22C416 it did not have enough evidence that the NSE committed a fraudulent and unfair trade practice, but had established that the exchange did not exercise due diligence when putting in place the co-location servers.

© Reuters. FILE PHOTO: A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

SEBI did not immediately respond to Reuters' request for comments.

($1 = 73.4600 Indian rupees)

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