NSE case: Sebi may recast high-powered advisory committee

NSE had filed an application with Sebi to settle the matter through the consent mechanism.

The Securities and Exchange Board of India (Sebi) may have to recast its high-powered advisory committee (HPAC) after two members – Dharmishta N Raval and Deloitte Haskins & Sells LLP chairman PR Ramesh – were seen to have a potential conflict of interest in the NSE case related to a probe into the co-location and alleged preferential treatment.

"I will request Sebi to permit me to recuse myself," ET quoted Raval as saying. Raval, now an independent advocate, used to handle key assignments in the legal department before she stepped down as Sebi’s executive director in 2003.

The other HPAC members are PR Ramesh, Chairman, Deloitte Haskins and Sells LLP; Anand Sinha, former RBI Deputy Governor; and VC Daga, former Judge, Bombay High Court.

Raval was appointed as independent director on the NSE board on 5 February 2016.

Deloitte had conducted a forensic audit of NSE's algorithm trading system as part of the investigation into the unfair access allegations, the report added. NSE had filed an application with Sebi to settle the matter through the consent mechanism.

It is worth mentioning here that veteran banker Vikram Limaye recently took charge as Managing Director and Chief Executive Officer of NSE. Taking at the helm at a time when market regulator Sebi is looking into allegations that India’s top bourse gave some clients unfair access to servers at its co-location centre between 2010 and 2014, Limaye said his immediate priority would be to fix regulatory issues.

Source: ET

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