NSE IPO last hurdle: Supreme Court nod to co-location settlement needed before Sebi NOC
The NSE IPO faces a final hurdle requiring Supreme Court approval of a settlement regarding a co-location controversy before Sebi can issue a NoC.Summary
The National Stock Exchange (NSE) is nearing its long-awaited IPO, but requires final approval from the Supreme Court regarding a settlement in a co-location dispute with market regulator Sebi. Sebi had previously challenged a Securities Appellate Tribunal order, and legal experts state that, as the appellant, Sebi cannot issue a NoC (No Objection Certificate) for the IPO until the Supreme Court approves the settlement. The dispute involves allegations that NSE provided certain traders with preferential access to its trading servers, giving them a speed advantage. NSE has already agreed to pay Rs 1,388 crore to Sebi as part of the settlement. Once the Supreme Court grants its approval, NSE will file its DRHP (draft red herring prospectus) and seek in-principle listing from BSE, paving the way for book-building and listing. The NSE initially sought to launch an IPO in 2016 to raise Rs 10,000 crore, but Sebi withheld approval due to the co-location controversy and concerns about fair play.
(Source：News9live)