NSE Co-location case: Here's what the SEBI committee headed by G Mahalingam may look into

The Securities and Exchange Board of India’s (SEBI) Investor Protection Committee headed by G Mahalingam is looking into various aspects that have emerged on account of the NSE co-location scam.

People in the know have told CNBC-TV18 that the market regulator is sensitive to the fact that an exchange like the NSE is not nearly a commercial entity. Any exchange is a market infrastructure institution and hence must uphold regulatory protection, and investor protection and hence cannot be treated nearly as a commercial entity.

The SEBI also believes that as a market infrastructure institution exchanges act as a first-level regulator, and hence they must keep a record of any and all pricing sensitive information. And in keeping with that, the secretarial staff and audit committees need tightening and many of these compliance and governance-related aspects need to be looked into.