- SEBI granted NOC to National Stock Exchange's IPO after a decade-long wait
- NSE settled a Rs 2,000-crore case with SEBI, subject to final approvals, sources said
- NSE plans to file its DRHP within 3-4 months, according to the persons privy to the development
The Securities and Exchange Board of India on Friday gave its long-pending no-objection certificate (NOC) to the initial public offering of the National Stock Exchange Ltd, India's largest bourse, that has been attempting to get listed on the BSE for the past 10 years.
"We are delighted to receive SEBI approval for our IPO," NSE Chairperson Srinivas Injeti said. "With SEBI's approval, we embark on a new chapter of value creation for all our stakeholders. This approval also reinforces confidence in NSE being an integral part of the Indian economy and beacon of Indian capital markets."
The NOC came after NSE settled a pending case with SEBI in excess of Rs 2,000 crore, subject to final approvals. The final payout in the matter may rise, with 12% interest applicable till date of settlement, NDTV Profit exclusively learnt from sources.
The exchange is likely to file its draft red-herring prospectus (DRHP) in 3-4 months, and the listing is expected in around 8-9 months, the persons privy to the developments added.
The NOC was issued by the market regulator without waiting for clearance from its High-Powered Advisory Committee (HPAC), the sources noted. The pending case will be placed before the HPAC, followed by approval from a panel of two whole-time members.
Post approval, the SEBI will seek withdrawal of the pending regulatory case from the Supreme Court, which will lead to the formal closure of the matter.
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A Decade-Long Wait
The exchange had filed its IPO prospectus back in 2016.
In a letter dated Nov. 21, 2016, the markets regulator approved the listing of equity shares on a recognised stock exchange, contingent upon compliance with applicable regulations and SEBI circulars. 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.
Notably, the NSE co-location case was settled in October 2024 for a whopping amount of Rs 643 crore.
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