Colo-dark fibre matters: Sebi agrees with NSE settlement in principle

The Securities and Exchange Board of India (Sebi) has, in principle, agreed to a proposed settlement with the National Stock Exchange (NSE) concerning the long-standing colocation and dark fibre cases. Sebi Chairman Tuhin Kanta Pandey stated that the proposal is under review by internal committees, but agreement has been reached in principle. NSE had offered to pay ₹1,388 crore to resolve these matters, which, if approved, would be the largest settlement in Sebi’s history. NSE has already provisioned ₹1,297 crore, including interest, for this settlement, in addition to a ₹100 crore penalty previously adjusted.

This settlement is considered a crucial step towards removing regulatory obstacles for NSE’s initial public offering (IPO), with Sebi expected to issue a no-objection certificate (NOC) this month. Market participants emphasize that resolving these legal disputes is essential for the IPO’s regulatory approval. The colocation case, currently before the Supreme Court, involves allegations of preferential access to NSE’s trading servers between 2015 and 2016.

If the settlement is finalized, Sebi will withdraw its appeal in the Supreme Court. Previously, the Securities Appellate Tribunal (SAT) upheld non-monetary penalties against NSE but reduced a disgorgement order to a ₹100 crore fine, and the Supreme Court later directed Sebi to refund approximately ₹300 crore to NSE. With the anticipated listing, NSE’s shareholder base has grown significantly, reaching 183,621 public shareholders, including 171,563 retail investors holding a 12.3 percent stake.

(Source：Business Standard)