NEW DELHI: Regulators RBI and Sebi have stepped up probe into alleged lapses in high-frequency trading offered through NSE’s ‘co-location’ facility, while the role of some top officials including board member and ex-CEO Ravi Narain is also being looked into.

The finance ministry is also keeping a “close watch” on the entire case and wants capital markets watchdog Sebi to fast-track the investigations as it involves the country’s largest stock exchange in terms of turnover and may have a bearing on the overall market sentiments, sources said.

“The show-cause notices have been issued by Sebi to the exchange and several top executives including Narain as also some former top management personnel and these would be soon followed by ‘summons’ for their personal hearings,” a top official said.

Multiple sources including from the regulatory authorities, the government as well as from the exchange itself said that pressure is building from within the board of the exchange, from some of its shareholders and a few other stakeholders for exit of some top as well as mid-level executives.

While sources close to the top management of the exchange vehemently denied any move regarding exit of Narain or others, one of the senior-most board members described the situation as “a complete mess” and said stern remedial measures have become necessary to send across a strong message.

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