NSE Settles Sebi Case, Pays Rs 40.35 Crore

The National Stock Exchange of India (NSE) has paid Rs 40.35 crore to the Securities and Exchange Board of India (Sebi) to settle multiple regulatory violations related to data handling and governance. The violations included outsourcing the storage of historical trade data to a third party without a legally binding agreement and sharing unpublished, price-sensitive information with its subsidiary and third parties, also without proper legal contracts. NSE's system enabled clients of its subsidiary to access unpublished corporate announcements before public disclosure, raising insider trading concerns. Additional issues involved inadequate policies for reviewing error trades and insufficient action against brokers who frequently modified client codes. The settlement was reached without NSE admitting or denying Sebi's findings and occurs as the exchange prepares for its delayed IPO, which has been set back by ongoing legal matters. Sebi has confirmed that this settlement resolves proceedings related to these specific violations.