The National Stock Exchange of India Limited (NSE) has moved the Securities Appellate Tribunal (SAT) against the Securities and Exchange Board of India’s (SEBI) Rs 6 crore fine for allegedly violating norms governing investments.
Sebi, in October, levied a fine of Rs 6 crore on NSE for allegedly investing in six companies unrelated or non-incidental to the stock exchange business.
The six entities viz. CAMS and Power Exchange India Ltd (PXIL), NSEIT Ltd, NSDL E-Governance Infrastructure Ltd (NEIL), Market Simplified India Ltd (MSIL) and Receivables Exchange of India Ltd (RXIL). ''The noticee (NSE) had engaged, directly and/or through its wholly-owned subsidiary NSICL, in activities that are unrelated/non-incidental to its activities as a stock exchange by way of acquisition of stakes in PXIL, CAMS, NSEIT Limited, NEIL, MSIL, and RXIL without seeking approval of Sebi,'' the regulator had said in its order.
Through such acts, NSE violated the provisions of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) or SECC norms, it had added. Following this, NSE had moved SAT against the Sebi's order.
In its order passed on December 11, SAT has stayed the penalty levied by Sebi on NSE. The matter has been listed for final disposal on January 29, 2021. According to the tribunal, one of the questions that arise for consideration is whether the appellant (NSE) as a stock exchange having made investments in six entities are related or incidental to the activities of the bourse.
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