The Securities and Exchange Board of India (SEBI) has imposed a penalty of over Rs 5 crore on the Delhi-based OPG Securities and three others in the NSE’s co-location case. In addition, OPG Securities, those facing penalty are namely Sanjay Gupta, Sangeeta Gupta and Om Prakash Gupta.

They were directors of OPG Securities during the time. In its 77-page order, Sebi said OPG, a trading member of NSE, used the Stock Exchange’s system to its advantage.

OPG Securities repeatedly connected to the secondary server almost on a daily basis without valid reasons and ignored NSE''s warning or advisories, for the purpose of gaining an unfair advantage over other trading members, the market regulator said. The stockbroker can be stated to have indulged in ''unfair trade practice'' in securities which is prohibited under the PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, Sebi added.
Further, the regulator said the directors of OPG Securities were vicariously liable for the acts of omissions or commissions of the trading member. Accordingly, Sebi levied a fine totalling Rs 5 crore on the four entities. Besides, Rs 10 lakh penalty each has been imposed on OPG Securities and Sanjay Gupta.

In April 2019, Sebi had barred OPG Securities and its three directors from accessing the securities market for five years and had asked them to disgorge illegal gains of more than Rs 15 crore in the NSE co-location facility case.

Sun Pharma, executives settle ‘fund diversion’ case with SEBI

Sebi sets 1-year capital market ban on Future Group CEO Kishore Biyani

Economic recovery relieving concern over banks’ asset quality: Moody’s