A special court has accepted a closing report that was submitted by the CBI in an offshoot of the NSE Co location SCAM case where a company was founded by Mumbai’s former police commissioner Sanjay Pandey for the audit of two share brokers, officials said Tuesday.
In its final report, the central agency said there were violations of Sebi Circulares with regard to audits of brokerage SMC Global Securities Ltd and Shaastra Securities Trading Private Limited- performed by ISEC services founded by Pandey, but there was “absence of sufficient material to criminal” for criminal “
No complicity of officials of National Stock Exchange (NSE) or Securities and Exchange Board of India (Sebi) to deliberately allow the brokers to submit insufficient audit reports during the investigation, the agency said.
The CBI had registered the FIR against ISEC services on a referral from the Directorate Directorate. The FIR had several violations of SEBI standards by the company with red flagging in the execution of system audits of stock brokers involved in algorithmic trade using the co-location facility.
Under the co-location facility, the NSE allegedly allowed the brokers to place their servers in the NSE data center for a load, giving them faster access to the price feed that has been distributed by the exhibition.
The alleged abuse of the facility is investigated by the agency in a separate case in which former NSE MD and CEO Chitra Ramkrishna were also arrested. She is now on bail.
The FIR with regard to alleged audit falling said that ISEC services had carried out audits of two “High Risk Brokers”, SMC Global and Shaastra, in a fraudulent way when the co-location was going on.
Pandey had founded the company in 2001 and had stopped as director in May 2006. His son and mother later took the lead over the company.
The Central ProBe Agency had also submitted its closing report in the case in 2023, but the special court had rejected it and ordered the agency to conduct further investigation in the case. After investigation, the CBI recently submitted its closing report and stated that the ISEC stock agents intended to avoid third -party audits with the intention of hiding their irregular activities.
Due to a lack of material, however, it is not possible to definitively determine the precise nature of the illegal activities, the agency said. The CBI did not find “sufficiently prosecutable evidence” of the actual compromise of the trading system resulting from audit -falling, especially in the absence of resulting price abuse of price volume, such as circular trade and pump and dump.
In the closing report, the agency that NSE has not established a robust mechanism for verifying the authenticity of audit reports and missed a mechanism for strictly implementing SEBI guidelines.
Failure to comply with the strict SEBI guidelines and submitting audit reports, which were only a paper exercise, “cannot be categorized as a violation of cheating or falsification,” said it.
The agency said that the NSE and Sebi have not placed sufficient guarantees to ensure compliance with the circulars that were violated during the process. It has given recommendations to the SEBI chairman to think about. Due to the time delay and absence of correct contemporary system audits, evidence is not sufficient to set the precise nature of expiring without reasonable doubt, it said.
The CBI carried out the analysis of trade data and degradation logs of the relevant period of the Global and Shaastra trading company managed by the ISEC.
The probe was confronted with limitations because the SEBI circular, which brokers ordered the call records to save for three years, was published on 26 March 2018. During the investigated period, from 1 October 2013 to 30 September 2015, there was no such legal mandate for SMC Global.
In the case of Shaastra, there was no question of keeping track of customer crowd logs because it was its own trading agency, the agency said. It is Sebi’s “bounding obligation to protect the importance of common investors on the securities market and to promote and develop the securities market, and it is hoped that they will perform their legal duty with a real intention, said special judge Gagandep Singh while accepting the closing report on Monday.
Their actions should not only stay on paper; On the contrary, strict implementation is in the work, he said.
Published on August 27, 2025
#Special #Court #accepts #CBI #closing #report #NSE #CoLocation #SCAMGelinkte #case