Almost a month after Moneylife reported that a few investors had fixed the high frequency trade (HFT) or algorithm based trading in the National Stock Exchange (NSE) and thereby jeopardised the interest of retail investors, the exchange on Tuesday filed a defamation case against the magazine with a claim of Rs 100 crore.
“National Stock Exchange has filed a defamation suit today, against an organisation and its representatives who published unsubstantiated and misleading reports against the exchange. The exchange has sought withdrawal of those reports etc, as well as, has made a claim of Rs 100 cr (which can be revised upwards). These reports referred to algo trading mechanism etc,” said a statement issued by the stock exchange on Tuesday.
A source close to the development confirmed that suit has been filed against Moneylife magazine, founded by Debashis Basu and Sucheta Dalal.
The magazine had earlier published article on Algo trading based on a whistleblower’s letter to the Securities and Exchange Board of India (SEBI) that it said was also copied to Dalal.
The letter detailed how certain institutions registered for HFT were allowed to profit illegally by the exchange’s insiders.