New Delhi, June 25 (PTI): In the high-profile NSE co-location case, market regulator Sebi wants its forensic audit to quantify unlawful gains made by some brokers, allegedly in connivance with the exchange officials, which may put in a limbo a settlement plea proposed by the bourse.

There is a strong view within Sebi that a settlement should not be considered at the moment as the case relates to a top market infrastructure institution and its outcome may have a significant impact on investor sentiments about the regulatory framework in India, a top official said.

A spokesperson for NSE declined to comment on the status of the settlement plea, saying the bourse would not want to say anything on a matter between the exchange and the regulator.

Sources aware about NSE's thinking said work was on for the consent settlement, and the exchange on its part was also working out the quantifiable gains made by brokers, if any.

They also said Sebi has welcomed a consent mechanism in many cases before, and that was a positive sign.

Regulatory sources maintained that any settlement is unlikely at this juncture.