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Why in News:

  • The Securities and Exchange Board of India (SEBI) ordered the National Stock Exchange of India (NSE) to pay a fine of about ₹1,000 crore within 45 days for its supervisory laxity that led to some of its broker-clients gaining preferential access to certain market data.


  • SEBI noted that the NSE’s use of the tick-by-tick server protocol had allowed certain high- frequency trading firms using the exchange’s secondary server to receive important market data before other market participants, who were thus put at a disadvantage.
  • It raised serious questions about market fairness
  • millions of retail investors believe that stock exchanges provide a level playing field to all the players.
  • SEBI ruled that it did not find sufficient evidence to conclude that the NSE committed a fraudulent act, but was unequivocal in ruling that the Exchange had failed to exercise the necessary due diligence to ensure that it served as a fair marketplace.
  • The exchange, which had been barred from proceeding with its initial public offering during the pendency of the SEBI probe, will finally be able to tap the capital markets to fund its growth, after a six-month moratorium.
  • Financial penalty is a welcome regulatory action.
  • As the market’s regulator, SEBI must deal with breaches of their supervisory brief by exchanges in an exemplary manner to ensure that small investors retain confidence in the fairness and soundness of key institutions that enable a market economy.

Securities and Exchange Board of India:

  • Securities and Exchange Board of India is a government established in 1988 authority which controls the securities market in India.
  • Indian Parliament passed SEBI Act 1992 in 1992 India which made SEBI a statutory body


  • It manages the security markets in India
  • It analysis the trading of stocks and safes the security market from the malpractices. It controls the stockbrokers and sub- stockbrokers
  • It provides education regarding market to the investors to enhance their knowledge
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