NSE dark-fibre case: SAT partly shelves Sebi’s order

New Delhi The Securities Appellate Tribunal (SAT) has set aside a markets regulator Sebi’s order directing the National Stock Exchange (NSE) to disgorge Rs62.6 crore, along with interest, in the dark-fibre case.

However, all other orders passed against NSE, comprising a periodic review of its co-location facility, putting in place comprehensive guidelines, Standard Operating Procedures and protocols with respect to its co-location facility were found appropriate and were upheld, according to an SAT order. In addition, the appellate tribunal has quashed Sebi’s direction barring NSE’s former MD and CEO Chitra Ramkrishna from holding any managerial positions in a market intermediary for three years and three other former officials --Ravi Varanasi, Nagendra Kumar and Devi Prasad Singh -- for a period of two years. The case relates to the alleged differential access given to certain broking firms in the form of ‘dark fibre’ at NSE, to connect across the co-location facilities before other members. Dark fibre or unlit fibre, with respect to network connectivity, refers to an already laid but unused or passive optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication.