#adigitalblogger #nse #scandal
NSE Dark Fibre Case:
What is a Dark Fibre?
According to SEBI, a dark fibre refers to an already laid but unused optical fibre, which is not connected to active equipment and does not have other data flowing through it, and is available for use in fibre-optic communication.
Complaint was received by the market regulator in 2015 that alleged irregularities in certain brokers availing point-to-point (P2P) dark fibre connectivity from Sampark Infotainment, which was the service provider for NSE’s co-location servers.
After alomst 7 years of investigation finally a verdict by SEBI is here.
SEBI’s investigation found that the dark fibre cable was laid by Sampark Infotainment in such a manner that it resulted in Way2Wealth and GKN Securities having a latency advantage over brokers not using Sampark or those who were denied Sampark connectivity. This made such brokers some hefty turnovers.
But these brokers weren't the only one and the direct conspirators, they had help from none other than NSE insiders.
Securities and Exchange Board of India (SEBI) on June 28 found 18 entities, including former National Stock Exchange chief executive officer Chitra Ramakrishna, NSE COO Anand Subramanian, and the NSE, guilty.
NSE alone slapped a Rs 7-crore fine, while Ramakrishna & Subbu has been handed a penalty of Rs 5 crore.
