National Stock Exchange of India
Controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
NSEIL settles Sebi STP-guidelines case
Settlement
National Stock Exchange of India Ltd (NSEIL) settled adjudication proceedings with Sebi over alleged violations of Straight Through Processing (STP) guidelines, paying Rs 4.87 crore. The allegations included operating as an STP centralised hub without renewed approval; the settlement was without admitting or denying the findings.
Source excerpt
The National Stock Exchange of India Ltd (NSEIL) on Wednesday settled with markets regulator Sebi a case pertaining to alleged violation of Straight Through Processing (STP) services guidelines after paying Rs 4.87 crore towards settlement fee.
It was alleged that NSEIL functioned as a STP centralised hub without obtaining the renewal of approval from Sebi and also failed to ensure if its STP service providers were having valid approvals, which resulted in violation of several provisions of the STP Guidelines.
The order comes after the exchange approached Sebi in April proposing to settle the instant proceedings initiated against it, "without admitting or denying the findings of fact and conclusions of law", through a settlement order.
2015
Co-location and preferential-access controversy
NSE's co-location arrangements became the subject of allegations that certain brokers received unfair advantages in accessing exchange systems or market data. The matter led to investigations and regulatory proceedings involving the exchange, former executives and other market participants, and prompted wider questions about governance, surveillance and equal access.
Market-manipulation and insider-trading cases
The exchange environment has also been associated with regulatory actions concerning alleged insider trading and manipulation, including activity in illiquid small-cap and penny stocks. These matters are distinct from the co-location controversy and have involved individuals and entities being restricted or barred by India's securities regulator.