The Securities Appellate Tribunal (SAT) has reversed a 2019 order issued by the Securities and Exchange Board of India (SEBI) that had instructed the National Stock Exchange (NSE) to disgorge ₹62.5 crore in the dark fibre case. Additionally, SAT has lifted SEBI’s restriction on Sampark Infotainment offering connectivity services to stock exchanges.
The dark fibre case revolves around allegations that NSE granted certain broking firms differential access through dark fibre—a passive optical fibre without active electronics or data flowing through it. The SEBI order implicated 17 entities, including former NSE officials Chitra Ramakrishna, Ravi Varanasi, Anand Subramanian, Nagendra Kumar, and Deviprasad Singh, for providing preferential access to specific entities.
SAT’s bench, led by Justice Tarun Agarwala, declared that SEBI’s order to disgorge ₹62.5 crore could not be upheld and, therefore, quashed the order. The tribunal also instructed SEBI to refund the money within four weeks.
Furthermore, SEBI’s order had implicated Chitra Ramakrishna, banning her from holding key positions in management or on boards of stock exchanges or SEBI-registered entities for three years. However, SAT has quashed this direction on Ramakrishna’s appeal.
The SEBI order also highlighted improper management, manipulation, irregular acts, lack of due diligence, misrepresentation, and false statements in the dark fibre incident. SEBI had criticized NSE’s handling of the colocation facility and accused certain trading members and unauthorized service providers of manipulating the situation with the involvement of NSE officials.
SAT’s overturning of the SEBI order is seen as a significant development in the ongoing legal proceedings related to the dark fibre case.