NEW DELHI, April 30 (Reuters) - India’s market regulator said on Tuesday the National Stock Exchange (NSE) did not exercise due diligence when putting in place a network that allowed high frequency traders unfair access to some network servers at the exchange.
The Securities and Exchange Board of India (SEBI) has been investigating allegations that NSE officials provided high frequency traders unfair access through co-location servers placed at the site of exchange, which could speed up algorithmic trading.
The SEBI has barred the NSE from raising money on the securities market directly or indirectly for six months.
It has also ordered it to pay within 45 days about 6.25 billion rupees ($89.76 million) with an interest rate of 12 percent a year effective from April 2014 to the Investor Protection and Education Fund.
$1 = 69.6330 Indian rupees Reporting by Nidhi Verma; Editing by Mark Potter