The National Stock Exchange of India (NSE) has moved closer to its initial public offering (IPO) after the Supreme Court disposed of the Securities and Exchange Board of India's (SEBI) appeals in the long-running co-location and dark-fibre cases. This decision, following a settlement of $1,491.21 crore (approximately $180 million USD at current exchange rates) between SEBI and NSE, removes a significant regulatory hurdle that had stalled the exchange's public listing for years. The settlement, which involved no admission or denial of guilt, is seen as the "ultimate green light" for the NSE's IPO.
The co-location case, dating back to 2015, involved allegations that some brokers received unfair advantages in accessing tick-by-tick data through NSE's co-location facility. In the dark-fibre case, SEBI claimed two brokers benefited from preferential point-to-point connectivity. While the Securities Appellate Tribunal had previously set aside SEBI's disgorgement orders in both cases, SEBI had appealed to the Supreme Court. The recent settlement, completed by NSE in July, involved $1,224 crore for the co-location case and approximately $268 crore for the dark-fibre matter.
The NSE's IPO is structured as an Offer for Sale (OFS) of 14.89 crore equity shares, representing about 6% of its paid-up capital. The proposed issue is estimated to be one of India's largest, potentially valued at around $30,000 crore (approximately $3.6 billion USD). Although the Supreme Court's decision clears the institutional overhang for the NSE, it does not absolve individuals involved. Legal proceedings, penalties, and criminal investigations against former officials, such as Chitra Ramkrishna, remain separate and are not covered by this settlement. Analysts estimate the unlisted market valuation of NSE at around $5 lakh crore (approximately $60 billion USD).
