All you need to know about NSE co location scam
NSE, the National stock exchange of India Limited was incorporated in the year 1992, located in Mumbai, India was making headlines in the news when its scam came into the spotlight in the year 2015.
The National Stock Exchange of India Ltd (NSE) co-location scam which first surfaced in the year 2015 is still not solved. NSE scam is related to the market manipulation at the National Stock Exchange of India, India’s leading stock exchange. Allegedly some selected players obtained the market price information ahead of the rest of the market, enabling them to front-run the rest of the market which is illegal.
A senior official used an analogy of cricket to simply explain how this system works “For a common investor or a broker trading on his or her normal terminal is like watching the live telecast of the match on television or in a stadium. But imagine your eyes and ears right behind every single player on the field, getting to know their moves and strategies on a real-time basis before anyone else. And, we are not even talking about match-fixing. The sophisticated algorithms at play make it possible to access a huge amount of data on a real-time basis with the use of modern computer systems and high-tech software solutions,” the official said.
SEBI has alleged in its notice that the National stock exchange of India ( NSE ) has earned close to ₹ 250 million in profit.
The CBI has arrested Anand Subramanian and Chitra Ramkrishna till date and they are widely criticised by the people for their wrong actions.
The investigation is still going on.