The Securities and Exchange Board of India (Sebi) is likely to move the Supreme Court seeking to set aside a Securities Appellate Tribunal order delivered earlier this week in the NSE co-location scam.
The SAT order had come as a relief to the National Stock Exchange (NSE) and its former MDs and CEOs Ravi Narain and Chitra Ramkrishna. On January 23, the tribunal set aside the April 2019 order of the markets regulator levying a disgorgement penalty running up to Rs 624.89 crore on the NSE.
It also set aside the the penalty of 25 percent salary disgorgement of the two former NSE executives during different periods of their leadership stint. Disgorgement refers to the repayment of gains that have been made illegally.
“In an earlier order of the SAT against an audit giant in the Satyam Computer case, SAT had upheld disgorgement against the auditor for the fees charged by it. However, in this case, the disgorgement out of revenue by NSE has not been upheld and that is surprising,” a securities lawyer told PTI.