Co-location case: Sebi needs to prove basis for disgorgement, NSE tells SAT

The counsel argued that the exchange should have also been given chance to explain its position on the disgorgement order

The National Stock Exchange (NSE) on Wednesday told the Securities Appellate Tribunal (SAT) that the Securities and Exchange Board of India (Sebi) must explain the basis of the disgorgement order it passed against the exchange in the co-location case.

Somasekhar Sudaresan, representing the NSE, said the order had observed that there was no case of fraud or collusion of employees with trading members in the co-location case. Therefore, a disgorgement order was not tenable, he added. 

Sudaresan also said the NSE had been exonerated under the Prohibition of Fraudulent and Unfair Trade Practices norms.

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