**Sebi Imposes ₹5.2 Crore Penalty on OPG Securities for NSE Co-Location Violations**
The Securities and Exchange Board of India (Sebi) has imposed a penalty of ₹5.2 crore on stock broker OPG Securities and its directors for unfair access to secondary market servers related to the NSE co-location issue. The penalty must be paid within 45 days.
### Penalty Details
– **Total Fine**: ₹5.2 crore
– **OPG Securities and Directors**: ₹5 crore for engaging in unfair trade practices.
– **Additional Fines**: ₹10 lakh each on OPG Securities and director Sanjay Gupta for non-compliance with the regulator’s code of conduct and obstructing the investigation.
Sebi’s Adjudicating Officer, Asha Shetty, noted that OPG Securities gained an unfair advantage by repeatedly accessing the Secondary POP Server, constituting a serious violation of trading practices. The firm failed to maintain integrity and diligence in its operations, leading to the directors being held vicariously liable for the company’s actions.
### Response from OPG Securities
In response to the penalties, OPG Securities and its directors argued for a hold on the fines until pending appeals in the Supreme Court and Securities Appellate Tribunal (SAT) are resolved. They claimed that accessing the secondary server was not prohibited and referenced past rulings that supported their position. They also sought to challenge the penalty calculation methodology.
However, Sebi clarified that the adjudication process was focused solely on the penalty’s quantum, not on re-evaluating established violations. Despite the pending Supreme Court decision, the adjudicating officer proceeded with the penalties, stating that the violations had already been confirmed and that the noticees had ample opportunity to present their case.
### Background
This penalty follows an initial ruling in February 2021, where Sebi had also imposed a ₹5.2 crore fine. After appealing to the SAT, the matter was remanded in July 2023 for reconsideration of the penalty’s quantum.
**FAQ: What was the reason for the penalty imposed on OPG Securities?**
The penalty was imposed for unfair access to secondary market servers in connection with the NSE co-location issue, which constituted serious violations of trading practices.
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