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SEBI to Clear NSE IPO This Month, Ending Years of Regulatory Delay

The Securities and Exchange Board of India is poised to issue a crucial no-objection certificate for the National Stock Exchange's initial public offering by the end of January. SEBI Chairman Tuhin Kanta Pandey stated the approval would allow NSE to proceed with its long-delayed listing process. The IPO has been stalled for years primarily due to the 'dark fibre' co-location case, which led to regulatory penalties. Meanwhile, strong retail investor interest persists, with nearly 1.46 lakh investors holding NSE shares in the grey market.

Key Points: SEBI to Issue NOC for NSE IPO by Month-End, Says Chairman

  • NSE IPO regulatory hurdle to be cleared
  • Approval likely before month-end
  • IPO delayed by dark fibre case
  • Strong retail investor interest in grey market
  • SEBI had earlier imposed penalties on NSE
2 min read

No-objection certificate for NSE IPO likely this month: SEBI Chief

SEBI Chairman says a no-objection certificate for the long-delayed NSE IPO is likely this month, clearing a major hurdle for the stock exchange's listing.

"The approval could come before the end of the month, after which it would be up to NSE to take the listing process forward. - Tuhin Kanta Pandey"

Mumbai, Jan 10

India's market regulator is set to clear a major regulatory hurdle for the long-delayed initial public offering of the National Stock Exchange by the month-end, Securities and Exchange Board of India chairman Tuhin Kanta Pandey said on Saturday.

Speaking at a press conference in Chennai, he said that the regulator is likely to issue a no-objection certificate to NSE soon.

"The approval could come before the end of the month, after which it would be up to NSE to take the listing process forward," Pandey stated.

"SEBI's no-objection certificate will be issued soon, possibly before the end of this month. It is then up to NSE to take the process forward," he mentioned.

NSE's IPO plans have been stuck for several years due to the so-called dark fibre case.

The case involved allegations that some high-frequency traders were given preferential access to NSE's co-location servers between 2010 and 2014 through faster private communication lines.

This allegedly allowed them to execute trades more quickly than other market participants.

In April 2019, Securities and Exchange Board of India directed NSE to disgorge Rs 62.58 crore in alleged unlawful gains and barred some senior officials from holding market-related positions.

In 2022, SEBI also imposed a penalty of Rs 7 crore on the exchange, but this was later set aside by the Securities Appellate Tribunal.

Meanwhile, earlier in July this year, the exchange informed that nearly 1.46 lakh retail investors hold National Stock Exchange (NSE) shares in the grey (unlisted) market.

Interestingly, retail investors' appetite remains strong despite a significant increase in share prices.

As many as 1.46 lakh investors hold positions in NSE shares, worth less than Rs 2 lakh.

According to NSE website, this number surged four-fold from 33,896 investors in the previous quarter. Conversely, 343 investors hold shares worth more than Rs 2 lakh, which is down from 354 in the previous quarter.

- IANS

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Reader Comments

P
Priya S
Good to see SEBI moving forward, but we cannot forget the dark fibre scandal. The exchange must rebuild complete trust. I hope this IPO brings more accountability and cleaner governance. 🤞
R
Rohit P
1.46 lakh retail investors already holding in grey market! That's amazing. Shows the faith of common people in NSE. Hope the listing price is reasonable and not inflated due to this hype.
S
Sarah B
As an investor, I'm cautiously optimistic. The past penalties and the SAT setting aside the fine raise questions. SEBI must ensure a level playing field this time. The integrity of our main stock exchange is paramount.
K
Karthik V
This will be a blockbuster listing for sure. But my only request to SEBI and NSE: please don't make the process complicated for small retail investors. Simple application, fair pricing. Let's make it a win for the aam investor.
M
Michael C
Interesting data point about the number of small holders increasing while larger holders decreased. Suggests democratization of ownership even before the IPO. A positive sign for market depth.

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