SAT partly sets aside SEBI order in NSE dark fibre case

SAT partly sets aside SEBI order in NSE dark fibre case

Subject: Economy

Section: Capital Market 

In News: Securities Appellate Tribunal (SAT) has partly set aside a SEBI order directing the National Stock Exchange (NSE) to disgorge ₹62.6 crore, along with interest, in the dark-fibre case.

Key Points:

• Securities Appellate Tribunal on Wednesday partly set aside a 2019 SEBI order directing the National Stock Exchange to disgorge Rs 62.6 crore made in unlawful gains, along with interest earned, from its co-location facility since September 2015.
• The case relates to the alleged differential access given to certain broking firms in the form of ‘dark fibre’ at NSE, to connect across the co-location facilities before other members.
• Dark fibre or unlit fibre, with respect to network connectivity, refers to an already laid but unused or passive optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication.
• All other orders passed against NSE, comprising a periodic review of its co-location facility, putting in place comprehensive guidelines, Standard Operating Procedures and protocols with respect to its co-location facility were found appropriate and were upheld, according to SAT’s order.