SAT partly sets aside SEBI order in NSE dark fibre case

  • August 11, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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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.
Securities Appellate Tribunal

  • Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the SEBI 
  • SAT also hears and disposes of appeals against orders passed by the Pension Fund Regulatory and Development Authority (PFRDA) under the PFRDA Act, 2013.
  • Further, SAT hears and disposes of appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI) under the Insurance Act, 1938, the General Insurance Business (Nationalization) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999.
economy SAT partly sets aside SEBI order in NSE dark fibre case