The Securities Appellate Tribunal (SAT) has granted interim stay on Sebi's order against Ajay Shah, Infotech Financial Services, its two company directors as well as NSE's senior official Suprabhat Lala in the co-location case.
The NSE in 2009 had engaged Shah and Infotech Financial Services for a research project. However, the entities allegedly developed an algorithm (algo) trading software by misusing confidential data from the NSE, according to Sebi.
In separate orders while granting interim relief to Infotech and others, the SAT said more than 10 years have elapsed and the entities were associated with the market during this period and no complaint on any other score has been found against them.
Besides, "the data which is alleged to have been used by the appellants (Infotech and others) for preparation of Algo trading software was explained by NSE to be in the public domain in related proceedings made against NSE," the tribunal said in the orders dated May 7.
Meanwhile, Sebi's order barring the entities from the market shall remain stayed till further orders, the tribunal said, and listed the matter for further hearing on July 22.
The tribunal has directed the Securities and Exchange Board of India (Sebi) to file its reply within six weeks.
Earlier, Sebi had barred leading academic Ajay Shah, Infotech Financial Services and its two directors -- Sunita Thomas and Krishna Dagli -- as well as NSE's Assitant Vice President Suprabhat Lala from the markets for two years for misusing NSE data for their commercial gains by developing algo trading products for sale in the securities market.
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