Mumbai, May 1 (IANS) Market regulator SEBI has directed the National Stock Exchange of India to deposit a sum of Rs 62.58 crore plus interest for unfair trade practice that allowed the usage of "Dark Fibre" in the co-location case.
It was alleged that NSE allowed certain stock brokers to access market data faster than others via dark fibre.
According to the regulator's order, NSE also has to deposit interest on the sum calculated at the rate of 12 per cent per annum from September 11, 2015 till the actual date of payment.
The regulator has further directed the NSE not to introduce any new derivative product for the next six months.
The misuse of the bourse's co-location facility came to light in 2015 when a whistleblower alleged collusion between a few employees of the stock exchange and brokers.
It was alleged that collusion and lax of oversight allowed a few brokers faster access to market data.
In technical parlance, a dark fibre refers to an already laid but unused or passive optical fibre, which is not connected to active equipment and do not have other data flowing through them and available for use in fibre-optic communication.
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