Co-location server case: NSE bans OPG Securities for 6 months




A show-cause notice was issued to OPG Securities on February 14, 2017 by the NSE’s Disciplinary Action Committee. Country’s leading bourse National Stock Exchange (NSE) has barred a Delhi-based stock broking firm OPG Securities from for a period of six month.

The exchange has banned all the segment of OPG Securities including capital market, futures & options, and currency derivative segments from September 29, 2017 to March 28, 2018.

According to an earlier report by the Economic Times, OPG Securities had been investigated for unfair access to NSE servers.

It was alleged that OPG Securities has gained unfair access to NSE’s algorithmic trading platform. A forensic audit report by Deloitte, also named the Delhi based brokerage to have benefitted from favoured access, allowing it execute trades ahead of other trading members.

A show-cause notice was issued to OPG Securities on February 14, 2017 by the NSE’s Disciplinary Action Committee seeking explanation why the brokerage had logged on to the secondary server (backup server) despite exchange’s warning.

Following complaints, a Sebi-appointed committee had initiated an examination and found instances of breach of fair access norms by the exchange. Consequently, market regulator Sebi asked the exchange to conduct an independent forensic examination by an external agency into its co-location facilities and also directed NSE to deposit the revenue generated from co-location in a separate bank account.




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