CO - LOCATION
Source: indianexpress
Why in News?
Market regulator SEBI has penalised 18 entities, including the National Stock Exchange (NSE), its former managing director Chitra Ramakrishna and the group president in the "dark fibre" case
What is Co-Location
Co-location is a facility where a third party can lease a rack/server space along with other computer hardware
A co-location facility provides infrastructure such as Power Supply, bandwidth, and cooling for setting up servers and storage data
What is Dark Fibre?
The dark fibre or unlit fibre, concerning network connectivity, refers to an already laid but unused or passive optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication
The case (dark fibre case) relates to alleged differential access given to certain broking firms in the form of 'dark fibre' at NSE, to connect across the co-location facilities before other members
SEBI( Security and Exchange Board of India)
About SEBI
- SEBI is a statutory body, not a constitutional body, which was set up by a Parliament established on April 12, 1992, by the provisions of the Security and exchange board of India Act, 1992
- Headquarters in Mumbai, regional offices are located in Ahmedabad, Chennai, Kolkata, and Delhi
- SEBI consists of Chairman and several other whole-time and part-time members
- Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI's decision, vested with powers of civil court
- SAT's decisions can be appealed to Supreme Court
Functions of SEBI
- Protect the interests of investors in securities, also promotes and regulate the securities market
- It is a quasi-legislative and quasi-judicial body which can draft regulations, conduct enquiries, pass rulings and impose penalties
Functions can be categorised into three of the following
- For issuers, it provides a marketplace in which issuers can increase their finance
- For investors, it ensures safety and provides information needed
- For Intermediaries, it enables a competitive professional market
| By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs 100 cr or more and attach assets in case of non-compliance |
