Economy Current Affairs - 2019

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SEBI bars NSE from securities market for 6 months: Co-Location Case

The Market regulator Securities and Exchange Board of India (SEBI) has barred National Stock Exchange (NSE) from accessing the securities market for six months and also imposed a fine of ₹1,000 crore on NSE in co-location case.

Co-Location Case

  • Co-location refers to system wherein a broker’s server is kept in the exchange premises to reduce latency (as it directly influences the amount of time trader takes to interact with market), or delay in computing terms, while executing trades.

 

  • In 2015, SEBI received complaints against NSE in which it was alleged that the system used by NSE to disseminate data through co-location facilities was partial, as it allowed users to get information before others and thereby created an information asymmetry between users.

SEBI’s verdict in Co-Location Case:

  • As inspected under the SEBI ‘Prohibition of Fraudulent and Unfair Trade Practices rules’ (PFUTP) Regulations, NSE was found guilty of committing fraudulent and unfair trade practice and it also did not exercised requisite due diligence while putting in place the TBT (tick-by-tick data feed) architecture, thus affecting market fairness.
  • SEBI has barred the NSE from accessing the securities market for six months as its actions.
  • It has fined NSE for almost ₹1,000 crore (i.e. ₹89 crore plus 12% interest) from 1 April 2014 for its alleged failure to exercise proper due diligence while offering co-location facility.
  • The disgorgement amount is required to deposited in Investor Protection and Education Fund (IPEF).
  • It also directed former and current top employees in the management of exchange to not hold any position in a stock exchange for a period of two to three years.

Note: NSE has the largest market share in equity segment and almost a monopoly in equity derivatives.

Month: Categories: Business, Economy & Banking

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Global Business Summit 2019

Global Business Summit 2019 was held in New Delhi. It was the fifth edition of the three-day Summit and was inaugurated on 22nd February 2019.

The Keynote address was delivered by Prime Minister Narendra Modi and the other speakers in the event included Union Ministers Arun Jaitley, Piyush Goyal Suresh Prabhu, Ravi Shankar Prasad, Founder & Chairman of Vedanta Resources Anil Agarwal, Chief Marketing Officer of Alibaba Group Chris Tung, Global CEO of Virgin Hyperloop One Jay Walder, Chairman of Bain Insights Group James Root, among others.

The Global Business Summit 2019 was aimed at unfolding the myriad contours of the world economy and defining the factors that will lead the Indian economy to newer heights by way of a carefully crafted plenary session and numerous parallel sessions & round table discussions that form part of the GBS experience.

Global Business Summit

The Global Business Summit launched on January 15, 2015, is a flagship initiative of the Times Group. The Summit envisions to bring together visionaries, thought leaders, heads of state, policy makers, academicians and corporate heads cohesively driving a singular agenda for Scripting Economic Change, by connecting the building blocks of Economics for India and the Globe.

The Global Business Summit aims to provide solutions to key macroeconomic challenges being faced in the current context and put forth a blueprint for sustainable, inclusive economic growth and serve as a platform for government to government interactions, business to government meetings, business to business engagements and helps corporates and governments secure investments by showcasing opportunities to apt audiences. The ambition of the Times Group is to establish the Global Business Summit as the Davos of the East

Month: Categories: Events & Observances

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