NSE IPO: Public Forum Moves Delhi High Court Over Delay In SEBI Approval

People Activism Forum has filed a rejoinder before the Delhi High Court mentioning delay in regulatory approval for National Stock Exchange of India Ltd. IPO, urging the Securities and Exchange Board of India to take action. According to the filing reviewed by NDTV Profit, the stock exchange had approached SEBI again at the end of August to seek approval for its public issue. 

However, even three months later, SEBI is yet to provide any valid explanation for withholding approval for NSE IPO.

The most recent hearing in the case occurred on Dec. 3, 2024, with the next hearing scheduled on March 6, 2025. In its filing, the Forum claimed that the prolonged delay is preventing existing NSE shareholders from unlocking the value of their shares.

The public is also unable to participate in NSE’s profits or invest in its shares through the open market, the affidavit asserts.

According to the affidavit, NSE had applied again for SEBI's approval following submissions filed by the regulator on Aug. 13, 2024. On Aug. 27, 2024, media outlets reported that NSE had sought SEBI's No-Objection Certificate (NOC) for its long-awaited IPO. A subsequent order from SEBI on Sept. 13, 2024, closed a colocation case. against the NSE due to insufficient evidence.

Despite these developments, the filing claims, SEBI has not yet approved the IPO, and according to reports, NSE’s CEO, Ashish Kumar Chauhan, has indicated that the exchange's IPO is contingent on SEBI’s approval, which remains pending. The delay has prompted the forum to question SEBI’s inaction, asserting that the regulator's failure to approve the IPO is not in the best interest of investors.

In its filing, the Forum also mentions SEBI’s mandate to protect investors, especially small retail investors, by fostering transparency and scrutiny in the market. The Forum argues that permitting NSE’s IPO would align with SEBI’s objectives.

Despite the ongoing delay, the Forum argues that SEBI must act promptly to allow the IPO to proceed, stressing that the exchange's listing would enhance market transparency and provide investors with greater opportunities.