NSE IPO: SEBI Chairman Says Back And Forth Underway On Key Issues
Key issues such as governance, litigation, and technology are still under consultation, the SEBI chief told NDTV Profit.
Securities and Exchange Board of India Chairman Tuhin Kanta Pandey said the market regulator is actively engaged in discussions with the National Stock Exchange regarding its long-delayed initial public offering.
Key issues such as governance, litigation, and technology are still under consultation, the SEBI chief told NDTV Profit. While he did not provide a timeline, he said “some of these points have gone back and forth”.
NSE, India's biggest bourse which is in the works to launch its much-anticipated IPO, had responded to a letter by the SEBI regarding a no-objection certificate, NDTV Profit had reported on March 28, citing people familiar with the matter.
The exchange claimed that it will divest its clearing corporation operations once regulatory clarity comes, to seek the certificate at the earliest. The NSE had first sought the certificate in August 2024.
The NSE added that it had not faced tech outages in recent years and has committed to work collaboratively with the regulator on various issues in a timely manner, the people told NDTV Profit on the condition of anonymity.
The exchange noted that in line with the SEBI's advice, it measures its technology resiliency by computing an IT resilience index that factors in various parameters like availability/reliability, scalability, business continuity, governance, security, and integrity, among others.
SEBI, in a letter dated Nov. 21, 2016, approved the listing of equity shares on a recognised stock exchange, contingent upon compliance with applicable regulations. The offer received approval from NSE's board of directors and shareholders through resolutions passed on Oct. 4, 2016, and Nov. 10, 2016, respectively.
During that period, NSE, its directors, and its group companies were not barred from accessing or operating in capital markets by SEBI or any other authorities.
However, in a 2019 order, SEBI barred NSE from accessing the securities market for six months due to complaints related to its co-location facilities. Although the Securities Appellate Tribunal modified financial penalties in January 2023, it upheld the market access restriction.
Subsequently, NSE's 2022-2023 annual report emphasised that the six-month prohibition period had ended and that it awaited SEBI's further approval for listing. News articles in December 2023 suggested SEBI had imposed additional conditions for NSE's IPO approval, including maintaining a glitch-free year, enhancing technological infrastructure, improving corporate governance, and resolving pending legal matters.
However, the NSE colocation case was settled in October 2024 for a whopping amount of Rs 643 crore.
