The Supreme Court on March 28 sought the National Stock Exchange's response to an appeal filed by the Securities Exchange Board of India (SEBI) that challenges an order that quashed a Rs 6-crore fine imposed on the NSE by the market regulator.
The SEBI has challenged the Securities Appellate Tribunal (SAT) order that quashed the fine slapped on the NSE for allegedly making investments in firms not related to the stock-exchange business.
SEBI had fined NSE for the alleged violation of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) norms of 2018. The fine was levied in 2020.
Also read: NSE Scam: Before you condemn Sebi, pause and consider these points
While quashing the SEBI's order, the SAT said the investments in question were made by the NSE before the implementation of the 2018 rules, commonly known as SECC (stock Exchanges and Clearing Corporations) Regulations norms.
The rules bar exchanges from investing or deploying funds in entities without SEBI’s permission.
The SAT ruled that the SECC norms of 2018 could not be applied retrospectively and the investments made by NSE could not be said to be in violation of these rules.
