The National Stock Exchange (NSE) is actively seeking key information from over 15 brokers, including major intermediaries. Their goal is to understand the origins of equity derivative orders placed between January 2020 and March 2022.
This initiative comes in response to an unusual surge in trade volumes for futures and options, along with a significant influx of new clients during the Covid-19 pandemic months.
To shed light on this matter, the exchange has instructed member brokers to provide critical details. These include the know-your-customer (KYC) particulars and financial records of their clients, identification of the devices used for placing trade orders, IP addresses, and the unique media access control (MAC) address present in all internet-enabled devices, such as mobile phones.
However, FINWEALTH , which cited anonymous sources, could not independently verify this information.
A prominent broker’s chief technology officer shared insights into the situation. It appears that the exchange’s authorities are primarily interested in pinpointing the geographical locations of traders.
This investigation might revolve around potential instances where sub-brokers or franchisees situated in remote areas gained unauthorized access to user credentials of unrelated investors, for the purpose of executing derivative trades.
Additionally, the exchange could be exploring whether these trade orders were initiated from foreign locations,