India’s market regulator is expected to resolve a key regulatory obstacle for the long-pending initial public offering (IPO) of the National Stock Exchange (NSE) by the end of the month, as per Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey. Pandey, speaking at a press conference in Chennai, mentioned that SEBI is likely to grant a no-objection certificate to NSE soon. The chairman stated that the approval could be granted before the month concludes, following which NSE would proceed with the listing process.
The IPO plans of NSE have faced delays for years due to the unresolved dark fibre case. This case revolves around allegations that certain high-frequency traders were provided preferential access to NSE’s co-location servers from 2010 to 2014 through faster private communication lines, enabling them to execute trades more swiftly than other market participants. In April 2019, SEBI instructed NSE to disgorge Rs 62.58 crore in alleged illicit gains and prohibited some senior officials from occupying market-related roles.
In 2022, SEBI imposed a penalty of Rs 7 crore on the exchange, which was subsequently annulled by the Securities Appellate Tribunal. Notably, earlier in July this year, NSE disclosed that approximately 1.46 lakh retail investors possess NSE shares in the grey (unlisted) market. Despite a notable rise in share prices, retail investors continue to show strong interest, with 1.46 lakh investors holding positions in NSE shares valued at less than Rs 2 lakh. This figure marks a four-fold increase from the previous quarter’s 33,896 investors. Conversely, the number of investors holding shares exceeding Rs 2 lakh decreased from 354 to 343 in the previous quarter.
