SAT stays Sebi order on NSE officials

Securities Appellate Tribunal (SAT) on Monday has granted an interim stay on orders passed by the markets regulator Securities and Exchange Board of India (Sebi) last week against three senior officials of the National Stock Exchange (NSE) in the co-location case.

The officials – Ravi Varanasi, head of business development, Nagendra Kumar, head of membership department, and Deviprasad Singh, head of collocation support – were found guilty by the markets regulator in the "dark-fibre scam" and were banned from holding positions or associating with entities in securities markets for two years. The officials, in their plea, said it will affect their livelihood.

The SAT has also granted interim relief to the three brokerage firms which were guilty of gaining unfair access to NSE systems. The three brokerages, OPG Securities, GKN Securities and Way2Wealth, however, were asked to deposit 50% of their penalty amount as security by May 20.

While OPG Securities, which gained unfair access to NSE systems, are banned from accessing the securities markets for five years, apart from a fine of Rs 15.57 crore, along with interests calculated at a rate of 12% annually from April 7, 2014, till the date of payments, GKN Securities and Way2Wealth are barred for two years from the securities market. Way2Wealth has been penalised Rs 13.54 crore and GKN of Rs 4.9 crore.

The next hearing is scheduled on July 22.