In the high-profile NSE co- location case, markets regulator Sebi wants its forensic audit to quantify unlawful gains made by some brokers, allegedly in connivance with the exchange officials, which may put in limbo a settlement plea proposed by the bourse.
There is a strong view within Sebi that settlement should not be considered at the moment as the case relates to a top market infrastructure institution and its outcome may have a significant impact on investor sentiments about regulatory framework in India, a top official said.
When contacted, a spokesperson for NSE (National Stock Exchange) declined to comment on the status of the settlement plea, saying the bourse would not want to say anything on a matter between the exchange and the regulator.
Sources maintained however that any settlement is unlikely at this juncture as the case is under the scanner of various regulators.