NSE co-location facility case: Sebi partially relaxes orders against 3 stock brokers
Sebi on Tuesday had barred OPG Securities and its three directors from markets for five years, while Way2wealth and GKN Securities were asked to not undertake any trade on any stock exchange on proprietary account for two years.
Markets regulator Sebi Friday partially relaxed orders against three stock brokers in NSE's co-location facility case by allowing them to close the open positions in F&O and currency derivatives segments within two months. The directions have been relaxed in the case of OPG Securities Pvt Ltd, Way2Wealth Brokers Pvt Ltd and GKN Securities.
On Tuesday, Sebi had barred OPG Securities and its three directors from markets for five years, while Way2wealth and GKN Securities were asked to not undertake any trade on any stock exchange on proprietary account for two years.
The Securities and Exchange Board of India's (Sebi) ruling came after it found the three brokers guilty of misconduct in NSE's co-location case.
Following the order on Tuesday, Sebi said, it is understood that the three brokers are holding open positions in futures and options (F&O) and currency derivatives segments at the end of trading on April 30, 2019, which need to be closed.
It is clarified that the directions issued vide orders shall stand relaxed for the limited purpose of allowing the three brokers to close open positions in the futures and options and currency derivatives segments, Sebi said in two separate orders Friday.
Accordingly, the brokers "are allowed to close/settle/square up their respective existing open positions in the futures & options and currency derivatives segments on or before the expiry date of respective contracts or within a period of two months from April 30, 2019, whichever is earlier, in terms of the contract," Sebi said.
However, the relaxation is subject to certain conditions, the regulator said.