Dark Fibre Case: Sebi fines NSE, Chitra Ramkrishna, others

Mumbai: The Securities and Exchange Board of India (Sebi) has imposed a penalty of 7 crore on the National Stock Exchange (NSE) and 5 crore on Chitra Ramkrishna, former chief executive of the exchange in the dark fibre case.

The regulator has also fined Anand Subramanian, former group operating officer and Ravi Varanasi, current chief business development officer, 5 crore each.

Sampark Infotainment, Way2Wealth Brokers and GKN Securities have been fined 3 crore, 6 crore and 5 crore, respectively.

The regulator said it received a complaint that alleged irregularities with respect to certain brokers availing point-to-point dark fibre connectivity from Sampark Infotainment.

Following this, Sebi initiated an investigation on the dealings of several entities for the period between 2009 and 2016.

The investigation revolves around alleged preferential treatment meted out by NSE to W2W and GKN by allowing them to utilise the services of Sampark for laying of dark fibre cable for P2P (point to point) connectivity despite Sampark not having the requisite license from the department of telecommunications.

Further, the cable was laid by Sampark in such a manner, directly at the rack of the broker at the exchange, that it resulted in W2W and GKN having a latency advantage over other brokers which were not availing the services of Sampark or who when applied to NSE for allowing them to engage Sampark for providing P2P connectivity were denied by NSE, the regulator said.

“Such an unfair advantage available with certain stock brokers is in contradiction to various regulations, recommendations and circulars issued in relation to the Colo facility emphasise on providing equal, unrestricted, transparent and fair access to all the brokers and all the participants without any bias or favour,” Sebi said in an order.