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SEBI Recovery Notice to OPG Securities: NSE Co-Location

11 June 20251 min read
BANKING & FINANCESEBI RecoveryNotice to OPGSecurities: NSECo-Location11 June 2025safalsetu.com

Why in the news

SEBI went after dues from a broker penalised in the NSE co-location matter.

Key facts

  • Penalty imposed April 2024 on OPG Securities for unfair access to NSE servers.
  • Charges against NSE and ex-officials were dropped in 2024 (lack of evidence); broker penalties stayed.
  • Appeals pending at SAT and the Supreme Court.
TermMeaning
Co-locationBroker servers placed close to exchange servers, cutting latency
Secondary POP serversLess crowded, faster; allegedly reached repeatedly by some brokers
TBT feedReal-time order book data, allegedly received earlier by some brokers

Why it matters

Faster data allowed anticipating trends and front-running, breaking the level playing field and raising doubts on market integrity and oversight.

Exam angle

  • Regulator: SEBI; exchange: NSE.
  • Related terms: latency, front-running, SAT.

Test yourself

1. SEBI issued a recovery notice to which broker in the NSE co-location case?

The notice was issued to OPG Securities and its directors.

2. In the NSE co-location case, what did the tick-by-tick (TBT) feed supply?

TBT provides real-time order book data.

3. Where were appeals in the NSE co-location matter still being heard in 2025?

SAT and the Supreme Court were hearing the appeals.