The National Stock Exchange of India Ltd (NSE) has reached a settlement with the Securities and Exchange Board of India (SEBI) regarding its Trading Access Point (TAP) Architecture and Network Connectivity case. The NSE will pay a  penalty of ₹643 crore (₹6,43,05,30,000) to resolve allegations that some high-frequency stock traders were manipulating the system.

SEBI’s order stated, “In view of the acceptance of the settlement terms by the panel of Whole Time Members (WTMs) and receipt of the settlement amount and undertakings by SEBI, the proceedings initiated against the applicants via the Show Cause Notice dated February 28, 2023, are hereby disposed of, as per approved settlement.”

On September 25, 2024, NSE remitted the settlement amount, marking the end of the proceedings.

The settlement applies to NSE, its former Managing Director and CEO Vikram Limaye, and several other top officials, including Umesh Jain, Narayan Neelakanthan, VR Narasimhan, Kamala K, Nilesh Tinakar, R Nandkumar, and Mayur Sindhwad.

In addition to the financial penalty, all applicants, except for NSE and GM Shenoy, will undertake at least 14 days of pro bono community service during the current financial year.

The TAP software, deployed by NSE in 2008, operates on the servers of Trading Members (TMs). It manages connections and messages related to orders and trades, allowing the exchange to estimate and levy transaction fees for these trades.