In the co-location case, the SEBI has barred the National Stock Exchange (NSE) from accessing the securities market for six months and imposed a fine of ₹1,000 crore on NSE in co-location case.
About:
Meaning: Co-location refers to the system wherein a broker’s server is kept in the exchange premises to reduce latency, or delay in computing terms, while executing trades.
Scam: In 2015, SEBI received complaints against NSE where it was alleged that the system that NSE used while disseminating data through co-location facilities allowed certain users to get information before others, thereby creating an information asymmetry.
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