The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 5.2 crore on OPG Securities and its three directors in the NSE co-location case. In a decisive order issued on Wednesday, SEBI said that OPG did not follow standards related to honesty, proper skills, vigilance in the operation of its business. SEBI also alleged that a director did not cooperate with SEBI and obstructed the investigation.
Securities Appellate Tribunal (SAT) had earlier confirmed that share broker OPG Securities had made illegal profit by making an inappropriate access to the secondary server of the National Stock Exchange. The tribunal had directed SEBI to reconsider the fine and recovery amount and rejected the previous order of illegal earning of Rs 15.57 crore on OPG by SEBI’s full -time member.
In September 2024, the market regulator had removed the allegations against the NSE and its former officials citing lack of evidence in support of the allegations. However, he revised the amount of illegal earnings of OPG to Rs 85 crore. Although this amount has been increased, the new fine is the same as SEBI’s 2021 order.
Prior to the new order, OPG urged SEBI to postpone the proceedings till the appeal is completed in the Supreme Court. The market regulator stated that the new action was limited to fixing a fresh fine under the instructions of the arrangement. OPG has challenged SEBI’s previous findings in SAT and Supreme Court.
First Published – April 2, 2025 | 10:49 pm IST
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