All you need to know about NSE algo scam

OK fine. Now for those intraday traders with all innocence this thread will pour all authentic information on the infamous NSE algo scam using HFT technology that was exposed by money life magazine.

Before i post the algo scam modus operandi below links show the integrity and litigations pouring against NSE

https://m.timesofindia.com/city/chennai/madras-high-court-puts-sebi-on-notice-in-multicrore-stock-trading-scam/articleshow/65457187.cms

They are trying hard to close the case file and push it under the carpet, and now you want to reopen it :slight_smile:

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It gained momentum when Mr Kumar a lawyer filed a writ in madras high court

In 2015 money life exposed the scam only to face threat and defamation suite

But they relentlessly boldly kept the flame alive…Aug 2018 when matter went to HC by writ petition by Mr Kumar it became very difficult to bury the scam just like that.

Mr.Kumar Should be a very Courageous man.

A very sensitive subject for many to even comment on out of fear.

Very much shocked to hear this scam… Are there any other scams, frauds or discrepancies in nse / bse & SEBI ( exposed/prevailing)- which are unaware to retail investors/ day traders as of now?.. Will it be possible to list out here by some expert to create awareness?.. Thanks.

@ZF8925

In order to even understand this concept we have to go back to 2015 when monelife exposed a whistle blower complaint. Read below article from 2015. From then to now some bold groups and press kept the flame alive.

Four years of preferential access to the National Stock Exchange of India Ltd.’s server earned Delhi-based brokerage firm OPG Securities Ltd. Rs 25 crore in profit.

That’s what market regulator has alleged in its show-cause notice to OPG Securities, based on an audit by Indian School of Business, Hyderabad. BloombergQuint reviewed a copy of the notice.

This is the first time in its nearly three-year-long probe that the Securities and Exchange Board of India has put an amount to the gains made through unfair access to NSE’s co-location service. The gain may seem underwhelming when compared to the impact the alleged scam has had on the NSE—Chief Executive Officer Chitra Ramkrishna was forced to step down and the exchange’s IPO has been delayed due to the ongoing proceedings. But the issue of unfair access to a stock exchange can’t be measured in trading gains or losses, say experts.

“It’s not about money…whether it’s one rupee or countless crores, the effect is the same: the market is not a level-playing field,” said Patrick Young, a capital markets expert and chief executive officer of European crowd-funding platform Hanza Trade. “Exchanges need to maintain ‘my word is my bond’ and once that dictum has been breached, there is de facto a crisis of confidence.”

CHENNAI : A writ plea has been made in the HC for a directive to the Securities Exchange Board of India (SEBI) to take action against the employees of National Stock Exchange (NSE) for the alleged fraud in the ‘colocation service’, which allegedly resulted in loss to the tune of crores to customers.

Justice T Raja, before whom the writ petition from advocate A Kumar came up for hearing last week, ordered notice to SEBI, returnable in two weeks. A colocation service is a data centre facility in which a business house can rent space for servers and other computing hardware.NSE introduced the facility of managed colocation service, which was named ‘Colocation as a Service’ (CaaS), to facilitate small and medium size members, who otherwise would find it difficult to avail the facility due to various reasons including high cost, lack of expertise in maintenance and troubleshooting.

Petitioner’s senior counsel P Wilson contended that the NSE had introduced the colocation facility without the approval of SEBI. It has amounted in commission of various illegal practices by the NSE employees, which included grant of preferential access to data dissemination servers to select stock brokers, counsel said.