NSE IPO: Sebi agrees ‘in-principle’ to settlement plea; path clears for long-awaited listing

The Securities and Exchange Board of India (Sebi) has reached an “in-principle” agreement to settle with the National Stock Exchange (NSE) concerning the long-standing unfair market access case. This development is a significant step towards resolving regulatory hurdles and enabling NSE to proceed with its initial public offering (IPO), which has been delayed since 2016. Sebi Chairman Tuhin Kanta Pandey stated that while the settlement application is under review by various committees, the regulator is generally in agreement with the proposal.

NSE offered to pay Rs 1,388 crore to settle the charges related to allegations that certain brokers received preferential access to its trading systems. The IPO is anticipated to be one of the largest in India’s capital markets. Furthermore, the government has approved allowing large companies to offer as little as 2.5% stake in an IPO, a change benefiting companies like NSE and Reliance Jio.

NSE’s managing director, Ashish Kumar Chauhan, indicated that filing the draft red herring prospectus (DRHP) could take up to four months after receiving the NOC from Sebi, with the IPO potentially launching seven to eight months after that. Sebi also addressed concerns regarding disclosure gaps in IPO documents, emphasizing the need for independent verification and transparency from investment bankers.

(Source：The Times Of India)