SAT sets aside NSE order against OPG

Mumbai: The Securities Appellate Tribunal (SAT) has set aside an order by the NSE banning OPG Securities for six months and has asked the exchange to pass a fresh order in the matter.

In September 2017, the NSE had suspended stockbroker OPG Securities for six months as a trading member on all segments after it found that the brokerage had used the secondary server instead of the primary server without any valid reason in the co-location facility.

The NSE had introduced co-location server at its premises in 2009 and OPG had subscribed to the facility, according to the SAT order. The use of secondary server was permitted only in case of failure of the primary server and the NSE had issued such directions, the SAT order said.

The NSE conducted the forensic investigation by Deliotte Touche Tohmatsu and the forensic report brought adverse findings against OPG, following which the exchange had passed the order in September 2017.

However, another forensic report by EY on the same issue was submitted and OPG argued that the report depicts a different picture.

 “In view of the fact that another forensic investigation report has come up it would be in the interest of justice that the impugned order be quashed and set aside,” SAT said in an order on Wednesday.