June 21, 2018 / 12:02 PM / a month ago

SEBI to act against entities in NSE probe over servers

MUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) said on Thursday it will initiate action against entities and individuals following an investigation at the National Stock Exchange (NSE) into whether high frequency traders were getting unfair access to some network servers at the exchange.

A guard walks past the NSE (National Stock Exchange) building in Mumbai, India, February 9, 2018. REUTERS/Danish Siddiqui/Files

“We have taken a view what is to be done, and actions are being initiated against various entities which includes institutions and individuals,” Ajay Tyagi, SEBI chairman, told a news conference after a board meeting.

SEBI has been investigating allegations that NSE officials had provided high frequency traders unfair access through co-location servers placed at the site of exchange, which could speed up algorithmic trading.

In another move, the regulator said it would allow companies to announce the price range for an initial public offering two days before the opening of the sale.

Currently firms have to announce the price five days prior to an IPO, and the change will reduce the risks arising from potential volatility in domestic and global markets, analysts said.

The logo of the Securities and Exchange Board of India (SEBI) is pictured on the premises of its headquarters in Mumbai, India March 1, 2017. REUTERS/Shailesh Andrade/Files

Reporting by Abhirup Roy; Editing by Simon Cameron-Moore

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