SEBI Passes Five Orders In NSE Co-Location Case
NEW DELHI: SEBI has passed five different orders against various entities involved with the dark fibre and co-location case involving NSE. This issue was also mentioned in the risk factors of the DRHP filed by National Stock Exchange in its proposed public offer. This issue was also responsible for claiming the sudden resignation of its then Managing Director and CEO Chitra Ramakrishna, immediately after the DRHP was filed.
The order against NSE involves disgorgement of Rs 624.89 crore on account of rack charges and co-location charges. The above amount has been derived based on the revenues stated by NSE in their balance sheet for the period 2010-11 to 2013-14 which was Rs 811.54 crore. Their average net margin for the period was 77 per cent which therefore comes to Rs 624.89 crore. NSE has to pay this amount with interest at 12 percent per annum from April 1 2014.
Further NSE is banned from accessing the capital markets directly or indirectly for a period of six months. This means that once NSE has paid the fine and served its six-month period of ban, they can launch their IPO. This should be a big relief for NSE. (IANS)
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