NSE Algo Scam: SEBI says action initiated against institutions, individuals
Moneylife Digital Team 22 June 2018
After receiving a nudge from Central Bureau of Investigation (CBI) in the National Stock Exchange (NSE) algo scam, market regulator the Securities and Exchange Board of India (SEBI) seems to have swung in to action. SEBI Chairman Ajay Tyagi told reporters that the market regulator is initiating action in the NSE algo or co-location scam, first exposed by Moneylife by publishing a whistleblower’s letter in June 2015
"SEBI has received inputs from forensic auditors and technical entities and action is being initiated against institution and individuals in NSE co-location case. The action will be made public in a few days," Mr Tyagi had said.
While the algo scam has been known for three years now, since Moneylife exposed it in June 2015, SEBI hasn’t shown much action. Taking a lead over SEBI, on 30 May 2018, CBI filed a first information report (FIR) against Sanjay Gupta, owner and promoter of OPG Securities Pvt Limited, Aman Kakrady (brother-in-law of Sanjay), Ajay Shah (who is alleged to have facilitated Gupta by developing and providing Algo software Chankaya) besides some unnamed officials of the NSE, SEBI. 
The nine-page FIR, filed on 30th May, is based on ‘source’ information; but it goes straight to the issues that SEBI officials have been shirking for three years. In these three years, the main investigation into this issue was directed by the highly regarded chairman of SEBI’s technical advisory committee (TAC), headed by Prof Ashok Jhunjhunwala. 
It may be recalled that Moneylife was the first to expose this scam in mid-2015, for which NSE had filed a defamation case against us.  A single-judge had penalised NSE for Rs50 lakhs for having filed a case against us. After filing an appeal against the order, NSE paid up the penalty. Meanwhile, in the wake of the scam, the top brass of NSE had to resign and a new management team took charge.
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