NSE IPO: SEBI Committee To Decide On Co-Location Settlement By September-End — Profit Exclusive

The decision on approving the settlement applications of India's leading bourse, the National Stock Exchange, in the co-location and dark fibre cases is likely to be decided in the next meeting of the SEBI's High-Powered Advisory Committee, people in the know told NDTV Profit.

The next meeting is likely to take place in the month of September, and the agenda is likely to include the final settlement in cases involving the NSE.

In the last meeting of the HPAC panel, the members decided on a pending audit related issue regarding the data storage work of the exchange. The case pertaining to a 2021 issue propped up amid allegations that the exchange did not undertake a written contract while allowing a third party vendor to safekeep its trade related data. The issue was allowed to be settled for over Rs 40 crore. The co-location and the dark fibre settlements could not come up in that meeting, people in the know added.

Currently, the settlement proceedings are in their final stages, NDTV Profit learnt.

The NSE's initial public offering is likely to receive a no-objection certificate from the Securities and Exchange Board of India post the approval of their settlement applications. It is to follow SEBI's acceptance of NSE's settlement amount offer, the persons privy to the development added.

NSE had offered around Rs 1,400 crore to settle pending cases. Other issues that have been previously highlighted are to be dealt with post settlement, the people further mentioned.

While an expedited approach is likely to be followed, the approvals may depend on several variables, they said. One of the people cited above said that the regulator is keen on settling the issue, but it will go through consultations before an internal committee.

Once the settlement issue is resolved, all other obstacles highlighted by SEBI in a February letter to NSE will likely be dealt with, a person privy to the matter told NDTV Profit.

One of the sources further mentioned that the exercise to file a draft red herring prospectus will only take place when a positive response is received from the markets regulator, as it is a vast process and has to be started from scratch.

The exchange is likely to file its draft IPO papers by December, subject to the nod it receives from the SEBI. The bourse is likely planning to launch its IPO either at the end of FY26 or at the very beginning of FY27, but it depends on the market conditions at the time, sources said.