SEBI fines NSE ₹643 crores for algorithmic trading software issue.
The Securities and Exchange Board of India (SEBI) levied a fine of Rs. 643 crores on National Stock Exchange of India (NSE) for algorithmic trading software issues.
NSE provides a software called “Trading Access Point” or TAP, in short, to its trading members. This software is deployed by NSE on the servers of trading members for managing connections and messages (orders/trades) of such trading members.
SEBI, through an investigation, found that some traders used the TAP software to route algorithmic orders, much higher than they were allowed to. This increased volume was aimed at crowding out orders of rival brokerage companies. NSE did not take remedial measures to prevent such misuse of software. Hence, the fine.
Now that NSE paid the fine, challenging the same initially, it's application to go IPO/public seems to be cleared.