NSE IPO revival depends on Supreme Court nod after SEBI settlement approval

The long-delayed initial public offering (IPO) of the National Stock Exchange (NSE) is now contingent on approval from the Supreme Court after the Securities and Exchange Board of India (SEBI) granted in-principle clearance for settling co-location and dark fibre disputes for ₹1,388 crore. This settlement, viewed as a critical step towards reviving the IPO plans stalled for nearly a decade, requires SEBI to seek the court’s permission due to its own ongoing appeal related to the case.

Legal experts emphasize that SEBI cannot unilaterally close the matter and must file an affidavit with the Supreme Court seeking permission to withdraw the appeal or have it disposed of in terms of the settlement. The court will then assess the settlement’s legality and public interest implications. While SEBI anticipates issuing a No-Objection Certificate (NOC) within a month, lawyers caution that this is unlikely to be unconditional until the Supreme Court formally acknowledges and disposes of the settlement.

Once the Supreme Court grants permission, NSE can refile its draft red herring prospectus (DRHP) and proceed with the remaining steps of the IPO process, including SEBI’s disclosure review and listing approval. Experts believe courts generally favor settlements in regulatory matters that safeguard public interest, but the entire process, including judicial engagement, may take several months.

(Source：The Hindu - Business Line)