SEBI Issued Recovery Notices to OPG Securities in NSE Co-location Case

The Securities and Exchange Board of India (SEBI) has issued recovery notices to OPG Securities and its directors, demanding payment of ₹5.35 crore within 15 days in connection with the National Stock Exchange (NSE) co-location case. The regulator warned that failure to comply could result in the attachment of assets, bank accounts, and even arrest.

In April 2025, SEBI imposed financial penalties on OPG Securities and its directors for gaining unfair access to NSE’s secondary market servers. The action stemmed from the firm’s repeated and unauthorised use of the secondary Point of Presence (POP) server, which gave it an undue advantage over other market participants.

Breakdown of the Penalty

Three separate notices were sent on Monday to:

• OPG Securities
• Sanjay Gupta
• Sangeeta Gupta
• Om Prakash Gupta

The total demand of ₹5.35 crore includes both penalties and accrued interest. SEBI has instructed them to pay within 15 days from the date of the notice.

Also Read: Why Is the NSE IPO on Hold? Key Hurdles Behind the Delay

Consequences for Non-Compliance

SEBI cautioned that if the dues are not paid within the stipulated time, it will initiate recovery proceedings. These may include:

• Attachment and sale of movable and immovable properties
• Freezing of bank accounts
• Possible arrest of the individuals involved

Details of SEBI's Findings

In its earlier order, SEBI found that OPG Securities exploited its access to the secondary POP server repeatedly, a practice it labeled as “unfair and recurrent.” SEBI noted that this behaviour constituted a serious breach of market integrity, irrespective of the monetary gains involved.

The regulator stated:

“Noticee 1 (OPG Securities) gained an unfair advantage by repeatedly accessing the Secondary POP Server... This amounts to a serious violation.”

Additional Penalties and Observations

Besides the collective fine of ₹5 crore, SEBI also imposed:

• ₹10 lakh on OPG Securities for violating the regulatory code of conduct
• ₹10 lakh on Sanjay Gupta for obstructing the investigation

SEBI further criticised the firm for failing to maintain high standards of integrity and for disregarding due diligence in its operations. The Guptas, as directors during the time of the violations, were held vicariously liable for the firm’s misconduct.

Conclusion

This action marks another major step in SEBI’s ongoing effort to clamp down on unfair trading practices and uphold market transparency. With the deadline approaching, OPG Securities and its directors now face mounting legal and financial pressure to comply.

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