The regulator has decided to conduct this special inspection after it found evidence that as many as 12 brokers might have got unfair access; a whistle-blower had earlier named just three brokers. The NSE board has appointed Deloitte India to probe these allegations. “Audit of NSE’s systems would be tabled before its board, which will then form a report and submit it to Sebi. Sebi’s directive in September to NSE board was more to rule out any possibility of collusion between NSE officials and brokers,” the Sebi official added. The matter of unfair access started when a whistle-blower wrote to Moneylife magazine, NSE and Sebi alleging that a broker, OPG Securities, gained unfair access while trading on NSE’s algorithmic trading platform.

Source: Mint October 23, 2016 18:00 UTC