NSE looks to settle probe into co-location case with Sebi

The National Stock Exchange (NSE) on Wednesday said it has initiated fresh talks with markets regulator Sebi to settle a probe into the co-location issue through consent mechanism.

"Now, Sebi has completed its work so we have again started the conversation with the regulator on consent," NSE MD and CEO Vikram Limaye said. A consent settlement allows entities to settle charges by paying a penalty without admission or denial of guilt.

The regulator is seeking a settlement with the regulator in connection with a probe relating to allegations of unfair access to its high frequency trading systems to some brokers.

The exchange's Rs 10,000 crore initial public offer has been delayed because of the probe in the co-location matter. "The timeline for the IPO is dependent on the resolution of the regulatory matters with Sebi," Limaye added.

Last month, Sebi issued fresh show-cause notices to the NSE and several of its former and current executives.

Meanwhile, NSE chairman Ashok Chawla said the exchange is planning to focus on equity, debt and interest rate futures segments for business expansion as well as on reducing the cost of raising funds for companies.

Equity market penetration has the potential to grow and the bourse intends to concentrate on segments like debt, interest rate futures and commodity market for expanding its business, Chawla said.

Open to M&As

The exchage is open to strategic mergers and acquisitions, said Limaye, who didn’t rule out the possibility of combining with the Multi-Commodity

Exchange. “It’s not about denying anything,” the head of the bourse said. “We aren’t averse to inorganic opportunities if it makes strategic sense—be it domestic or international.”

Chawla said the exchange will focus on reducing the fund raising costs for companies and also looks at organic and inorganic growth opportunities.